Find all School-related info fast with the new School-Specific MBA Forum

It is currently 30 Aug 2014, 16:24

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

The Maxilux car company's design for its new luxury model,

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 29 Dec 2011
Posts: 38
Followers: 0

Kudos [?]: 4 [0], given: 29

The Maxilux car company's design for its new luxury model, [#permalink] New post 30 Oct 2012, 22:15
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

77% (02:18) correct 23% (00:55) wrong based on 52 sessions
The Maxilux car company's design for its new luxury model, the Max 100, included a special design for the tires that was intended to complement the model's image. The winning bid for supplying these tires was submitted by Rubco. Analysts concluded that the bid would only just cover Rubco's costs on the tires, but Rubco executives claim that winning the bid will actually make a profit for the company.

Which of the following, if true, most strongly justifies the claim made by Rubco's executives?

(A) In any Maxilux model, the spare tire is exactly the same make and model as the tires that are mounted on the wheels.

(B) Rubco holds exclusive contracts to supply Maxilux with the tires for a number of other models made by Maxilux.

(C) The production facilities for the Max 100 and those for the tires to be supplied by Rubco are located very near each other.

(D) When people who have purchased a carefully designed luxury automobile need to replace a worn part of it, they almost invariably replace it with a part of exactly the same make and type.

(E) When Maxilux awarded the tire contract to Rubco, the only criterion on which Rubco's bid was clearly ahead of its competitors' bids was price.


-----------------------------
Can someone help me guide through the answer choices for this?

Many thanks.
[Reveal] Spoiler: OA
Expert Post
1 KUDOS received
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1425
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 127

Kudos [?]: 599 [1] , given: 62

GMAT ToolKit User GMAT Tests User Premium Member
Re: The Maxilux car company's design for its new luxury model [#permalink] New post 30 Oct 2012, 22:29
1
This post received
KUDOS
Expert's post
elegan wrote:
The Maxilux car company's design for its new luxury model, the Max 100, included a special design for the tires that was intended to complement the model's image. The winning bid for supplying these tires was submitted by Rubco. Analysts concluded that the bid would only just cover Rubco's costs on the tires, but Rubco executives claim that winning the bid will actually make a profit for the company.

Which of the following, if true, most strongly justifies the claim made by Rubco's executives?

(A) In any Maxilux model, the spare tire is exactly the same make and model as the tires that are mounted on the wheels.

(B) Rubco holds exclusive contracts to supply Maxilux with the tires for a number of other models made by Maxilux.

(C) The production facilities for the Max 100 and those for the tires to be supplied by Rubco are located very near each other.

(D) When people who have purchased a carefully designed luxury automobile need to replace a worn part of it, they almost invariably replace it with a part of exactly the same make and type.

(E) When Maxilux awarded the tire contract to Rubco, the only criterion on which Rubco's bid was clearly ahead of its competitors' bids was price.


-----------------------------
Can someone help me guide through the answer choices for this?

Many thanks.


In this question you have to prove that even though company's bid just covers the Rubco's costs on the tyres, it will eventually lead to profits for the company. Certainly if there are long term profits, then its a good sign for the company.
On looking at the options, only D makes sense in that it explicity states that when people who purchased MAX 100 need to replace a worn part of it such as tyres, people will replace it with the same make and type, leading to huge profits for the company.
Hope that helps.
-s
_________________

Prepositional Phrases Clarified|Elimination of BEING| Absolute Phrases Clarified
Rules For Posting
www.Univ-Scholarships.com

Manager
Manager
avatar
Joined: 21 Jun 2011
Posts: 73
Location: United States
Concentration: Accounting, Finance
WE: Accounting (Accounting)
Followers: 1

Kudos [?]: 11 [0], given: 11

Re: The Maxilux car company's design for its new luxury model [#permalink] New post 31 Oct 2012, 01:43
Marcab wrote:
elegan wrote:
The Maxilux car company's design for its new luxury model, the Max 100, included a special design for the tires that was intended to complement the model's image. The winning bid for supplying these tires was submitted by Rubco. Analysts concluded that the bid would only just cover Rubco's costs on the tires, but Rubco executives claim that winning the bid will actually make a profit for the company.

Which of the following, if true, most strongly justifies the claim made by Rubco's executives?

(A) In any Maxilux model, the spare tire is exactly the same make and model as the tires that are mounted on the wheels.

(B) Rubco holds exclusive contracts to supply Maxilux with the tires for a number of other models made by Maxilux.

(C) The production facilities for the Max 100 and those for the tires to be supplied by Rubco are located very near each other.

(D) When people who have purchased a carefully designed luxury automobile need to replace a worn part of it, they almost invariably replace it with a part of exactly the same make and type.

(E) When Maxilux awarded the tire contract to Rubco, the only criterion on which Rubco's bid was clearly ahead of its competitors' bids was price.


-----------------------------
Can someone help me guide through the answer choices for this?

Many thanks.


In this question you have to prove that even though company's bid just covers the Rubco's costs on the tyres, it will eventually lead to profits for the company. Certainly if there are long term profits, then its a good sign for the company.
On looking at the options, only D makes sense in that it explicity states that when people who purchased MAX 100 need to replace a worn part of it such as tyres, people will replace it with the same make and type, leading to huge profits for the company.
Hope that helps.
-s


I thought the OA would be between C & D. Shouldn't C win over D because In D (When people who have purchased a carefully designed luxury automobile need to replace a worn part of it, they almost invariably replace it with a part of exactly the same make and type.) the contract was for tyres. This option talks about worn parts and not specific to tyres. So increasing the scope of the argument.
Further Profit also means SP-CP. So in C, which states that the transportation cost to be less (the plants being near) actually says that the CP would be less, which indirectly means more profit...
Please let me know if I am thinking wrong here...
Expert Post
3 KUDOS received
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1425
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 127

Kudos [?]: 599 [3] , given: 62

GMAT ToolKit User GMAT Tests User Premium Member
Re: The Maxilux car company's design for its new luxury model [#permalink] New post 31 Oct 2012, 02:53
3
This post received
KUDOS
Expert's post
davidfrank wrote:
Marcab wrote:
elegan wrote:
The Maxilux car company's design for its new luxury model, the Max 100, included a special design for the tires that was intended to complement the model's image. The winning bid for supplying these tires was submitted by Rubco. Analysts concluded that the bid would only just cover Rubco's costs on the tires, but Rubco executives claim that winning the bid will actually make a profit for the company.

Which of the following, if true, most strongly justifies the claim made by Rubco's executives?

(A) In any Maxilux model, the spare tire is exactly the same make and model as the tires that are mounted on the wheels.

(B) Rubco holds exclusive contracts to supply Maxilux with the tires for a number of other models made by Maxilux.

(C) The production facilities for the Max 100 and those for the tires to be supplied by Rubco are located very near each other.

(D) When people who have purchased a carefully designed luxury automobile need to replace a worn part of it, they almost invariably replace it with a part of exactly the same make and type.

(E) When Maxilux awarded the tire contract to Rubco, the only criterion on which Rubco's bid was clearly ahead of its competitors' bids was price.


-----------------------------
Can someone help me guide through the answer choices for this?

Many thanks.


In this question you have to prove that even though company's bid just covers the Rubco's costs on the tyres, it will eventually lead to profits for the company. Certainly if there are long term profits, then its a good sign for the company.
On looking at the options, only D makes sense in that it explicity states that when people who purchased MAX 100 need to replace a worn part of it such as tyres, people will replace it with the same make and type, leading to huge profits for the company.
Hope that helps.
-s


I thought the OA would be between C & D. Shouldn't C win over D because In D (When people who have purchased a carefully designed luxury automobile need to replace a worn part of it, they almost invariably replace it with a part of exactly the same make and type.) the contract was for tyres. This option talks about worn parts and not specific to tyres. So increasing the scope of the argument.
Further Profit also means SP-CP. So in C, which states that the transportation cost to be less (the plants being near) actually says that the CP would be less, which indirectly means more profit...
Please let me know if I am thinking wrong here...


Hii David.
An example will clear all your doubts regarding C.
The screen of Apple's phone iPhone are manufactured by Samsung. They won the bid in, I guess, 2005. Now had Samsung shifted its production facility to US, do you guarantee that it might have been beneficial. NO.Simply because there are several other factors to be looked such as wages. If you think that it could be compensated by less transportation costs, then you may be assuming that transportation costs are much higher.
IN STRENGTHENING QUESTIONS, THERE IS NO PLACE FOR ASSUMPTIONS. A simple No No.
Now in the same example, just even Samsung just covers its production cost, but whenever there is a need to replace the screen, the people will replace it with the same make and type. So people will stick over to this brand. Now Samsung, even if increases its prices, will certainly rule. Though its my opinion :D
Hope that helps.
-s
_________________

Prepositional Phrases Clarified|Elimination of BEING| Absolute Phrases Clarified
Rules For Posting
www.Univ-Scholarships.com

Senior Manager
Senior Manager
avatar
Joined: 06 Aug 2011
Posts: 409
Followers: 2

Kudos [?]: 56 [0], given: 82

Re: The Maxilux car company's design for its new luxury model [#permalink] New post 31 Oct 2012, 07:52
Great Marcab..nice explanation..

i also chose D .. ...:))..
_________________

Bole So Nehal.. Sat Siri Akal.. Waheguru ji help me to get 700+ score !

Re: The Maxilux car company's design for its new luxury model   [#permalink] 31 Oct 2012, 07:52
    Similar topics Author Replies Last post
Similar
Topics:
2 A toy company's engineering department developed a new model wastedyouth 4 09 Dec 2013, 10:44
Experts publish their posts in the topic A certain car dealership offers its newest model in ten emmak 3 11 Mar 2013, 22:41
3 Experts publish their posts in the topic Densmore Company, known for its luxury goods, has recently CharuKapoor 2 31 Jan 2013, 11:44
18 Experts publish their posts in the topic The Maxilux car company's design for its new luxury model, betterscore 11 07 Aug 2012, 13:43
A car testing company tests its cars for the durability of joemama142000 7 18 Feb 2006, 15:14
Display posts from previous: Sort by

The Maxilux car company's design for its new luxury model,

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.