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Surveys reveal that the vast majority of hotel guests in the

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Surveys reveal that the vast majority of hotel guests in the [#permalink] New post 28 Apr 2012, 21:22
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Difficulty:

  35% (medium)

Question Stats:

65% (02:16) correct 35% (01:24) wrong based on 203 sessions
Surveys reveal that the vast majority of hotel guests in the United States resent the high
prices of the items in the mini-bars in their hotel rooms.These guests would prefer to have an
empty refrigerator in their rooms in order to have space to put their own food and beverages,
although a large percentage of these guests would still make at least one purchase from their
in-room mini-bar. After analyzing the results of the study, the management of Hotel T
decided that it would be more profitable to eliminate the mini-bar and install empty
refrigerators in each room. Which of the following, if true, would support Hotel T’s plan to
increase profitability by eliminating in room mini-bars in favor of empty refrigerators?
A) There is currently some space available in Hotel T’s in-room mini-bars for guests to put their
own items.
b) Hotel T is located in the United States.
c) Some guests of Hotel T do not make any purchases from their in-room mini-bars.
d) The money that Hotel T makes from the mini-bar purchases of its guests is less than the
money that Hotel T loses from discarding mini-bar items that have not sold by their
expiration dates.
e) It will cost Hotel T less money to maintain empty refrigerators in its guest rooms than to
maintain stocked mini-bars in those rooms.

Main CR Qs link - cr-qs-600-700-level-131508.html
[Reveal] Spoiler: OA

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Re: CR - Strengthen - # 1 [#permalink] New post 29 Apr 2012, 08:37
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A) There is currently some space available in Hotel T’s in-room mini-bars for guests to put their
own items. Out of scope
b) Hotel T is located in the United States. Not relevant
c) Some guests of Hotel T do not make any purchases from their in-room mini-bars. Not relevant
d) The money that Hotel T makes from the mini-bar purchases of its guests is less than the
money that Hotel T loses from discarding mini-bar items that have not sold by their HOLD
expiration dates.
e) It will cost Hotel T less money to maintain empty refrigerators in its guest rooms than to
maintain stocked mini-bars in those rooms. Hold

While e is true, in the premise manager does take into account of 1 item sold thus D is a better choice.
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Re: CR - Strengthen - # 1 [#permalink] New post 29 Apr 2012, 08:47
A,B,C can be easily eliminated.

Out of D,E .E can be eliminated as it only takes into account the cost of maintaining empty refrigerators than to maintain stocked mini-bars but it neglects the profit after selling the food and beverages kept in the refrigerators.
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Re: CR - Strengthen - # 1 [#permalink] New post 29 Dec 2013, 18:05
gmatfighter12 wrote:
A) There is currently some space available in Hotel T’s in-room mini-bars for guests to put their
own items. Out of scope
b) Hotel T is located in the United States. Not relevant
c) Some guests of Hotel T do not make any purchases from their in-room mini-bars. Not relevant
d) The money that Hotel T makes from the mini-bar purchases of its guests is less than the
money that Hotel T loses from discarding mini-bar items that have not sold by their HOLD
expiration dates.
e) It will cost Hotel T less money to maintain empty refrigerators in its guest rooms than to
maintain stocked mini-bars in those rooms. Hold

While e is true, in the premise manager does take into account of 1 item sold thus D is a better choice.
Better explanation for avoiding E is that the hotel can't SELL anything from an empty refrigerator, but they could SELL things from the minibar -- a consideration that is just ignored in E. In that case, even if maintainance of mini-bars cost more, it may be better to keep mini-bars as they create more revenues.
D definitely covers this position.
HTH

BTW, an advanced version of this question can be located here: alan-government-subsidies-have-been-proposed-in-cariana-to-163278.html

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Re: Surveys reveal that the vast majority of hotel guests in the [#permalink] New post 27 Mar 2014, 07:31
So we need to strengthen the fact that eliminating refrigerators altogether is a better strategy than having those same refrigerators empty in the guests room. Between D and E. E says that it will cost less money to maintain empty refrigerators than stocked minibars. Then if this is true why did they eliminate refrigerators altogether? This doesn't strengthen the conclusion, in fact it sort of weakens it. In D we have that the money made from purchases is less than the money lost from discarding. This makes perfect sense, that's why it is a better strategy to eliminate those minibars rather than have them stocked. This answer choice strengthens the conclusion and is thus the correct one

Hope this helps
Cheers
J
Re: Surveys reveal that the vast majority of hotel guests in the   [#permalink] 27 Mar 2014, 07:31
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