Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Jul 0911:00 AM PDT
-12:30 PM PDT
Welcome to the M7 MBA Spotlight Series, featuring MIT Sloan School of Management! This video is part of GMAT Club’s exclusive MBA Spotlight event, where top business schools meet prospective applicants like you.- Jun 30
08:00 AM PDT
-11:59 PM PDT
Join us June 30th for 2 weeks of GMAT questions (just 8 per day) to help with your prep and to compete with your fellow GMAT Clubbers for a chance to win a prize fund of $30,000 for you and your team-mates! - Jul 10
11:00 AM PDT
-11:00 AM PDT
In our conversation, Kishore talks about how strategically he used data analytics to identify high impact areas to focus on as well as his early morning study routine (3 AM prep!) that optimized his GMAT preparation. 
Jul 1211:00 AM IST
-01:00 PM IST
Attend this session to learn how to Deconstruct arguments, Pre-Think Author’s Assumptions, and apply Negation Test.
Jul 1311:00 AM EDT
-12:30 PM EDT
Looking for your GMAT motivation to break through the score plateau? Pragati improved her score by massive 160 points with strategic guidance and hard-work! Find out how personalized mentorship and a strong mindset can turn GMAT struggles into success.
Jul 1508:00 PM PDT
-09:00 PM PDT
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
13 Mar 2019, 12:16
Kudos
Bookmarks
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
65% (01:54) correct
35%
(01:59)
wrong
based on 292
sessions
History
Date
Time
Result
Not Attempted Yet
A car manufacturer periodically discounts certain car models to its dealers to coincide with intensive advertising campaigns focused on those cars. After analyzing the results of this program, the manufacturer found that sales of the discounted cars was strong, but it also concluded that it could reap greater profits if it did not hold promotions in this way.
Which of the following statements, if true, best accounts for the manufacturer’s conclusion about profitability?
A. Some consumers worry that discounted cars are more likely to be defective.
B. The car manufacturer had not been effective in controlling the production costs of the cars, and these rising costs ate into the manufacturer’s profits.
C. Although dealers requested large numbers of the cars at discounted prices, they generally sold the cars at the normal retail price, thereby keeping more of the profit for themselves.
D. Many consumers buy large-ticket items, such as cars, only when they are on sale.
E. The manufacturer’s intensive advertising campaign did not sufficiently emphasize the cars’ high levels of performance on road tests.
Which of the following statements, if true, best accounts for the manufacturer’s conclusion about profitability?
A. Some consumers worry that discounted cars are more likely to be defective.
B. The car manufacturer had not been effective in controlling the production costs of the cars, and these rising costs ate into the manufacturer’s profits.
C. Although dealers requested large numbers of the cars at discounted prices, they generally sold the cars at the normal retail price, thereby keeping more of the profit for themselves.
D. Many consumers buy large-ticket items, such as cars, only when they are on sale.
E. The manufacturer’s intensive advertising campaign did not sufficiently emphasize the cars’ high levels of performance on road tests.
Source: McGraw-Hill's GMAT
Difficulty Level: 650
Difficulty Level: 650
NRJ11090
Joined: 19 Mar 2018
Last visit: 22 May 2024
Posts: 55
Given Kudos: 53
Location: India
Concentration: Operations, Strategy
Schools: IIM Udaipur '21 IIMC PGPEX"20 ISB '20 IIMA PGPX"20
GMAT 1: 600 Q42 V31
GPA: 4
WE:Operations (Energy)
14 Mar 2019, 03:34
Kudos
Bookmarks
SajjadAhmad
A car manufacturer periodically discounts certain car models to its dealers to coincide with intensive advertising campaigns focused on those cars. After analyzing the results of this program, the manufacturer found that sales of the discounted cars was strong, but it also concluded that it could reap greater profits if it did not hold promotions in this way.
Which of the following statements, if true, best accounts for the manufacturer’s conclusion about profitability?
A. Some consumers worry that discounted cars are more likely to be defective.
B. The car manufacturer had not been effective in controlling the production costs of the cars, and these rising costs ate into the manufacturer’s profits.
C. Although dealers requested large numbers of the cars at discounted prices, they generally sold the cars at the normal retail price, thereby keeping more of the profit for themselves.
D. Many consumers buy large-ticket items, such as cars, only when they are on sale.
E. The manufacturer’s intensive advertising campaign did not sufficiently emphasize the cars’ high levels of performance on road tests.
Source: McGraw-Hill's GMAT
Which of the following statements, if true, best accounts for the manufacturer’s conclusion about profitability?
A. Some consumers worry that discounted cars are more likely to be defective.
B. The car manufacturer had not been effective in controlling the production costs of the cars, and these rising costs ate into the manufacturer’s profits.
C. Although dealers requested large numbers of the cars at discounted prices, they generally sold the cars at the normal retail price, thereby keeping more of the profit for themselves.
D. Many consumers buy large-ticket items, such as cars, only when they are on sale.
E. The manufacturer’s intensive advertising campaign did not sufficiently emphasize the cars’ high levels of performance on road tests.
Source: McGraw-Hill's GMAT
IMO C- Because the last part of the last sentence- "but it also concluded that it could reap greater profits if it did not hold promotions in this way" indicates that the manufacturer could have earned higher profits even if he had not done such kind of advertising. Only C focuses on this part. The dealers requested for discounted cars but sold them at normal retail price, here even if the manufacturer had not given discounts, the cars would still have got sold. Hence, by giving discounts the manufacturer reduced his profits.
24 Nov 2022, 04:59
Kudos
Bookmarks
Conclusion 1- Sales of discounted cars are strong.
Conclusion 2- To make more profits it should not use the discount scheme.
The question asks about conclusion 2.
The company does two things 1.provides discount to dealers
2.runs ad campaigns.
The company concludes that if the sales are good why do we need to run the discount scheme.
Maybe the consumers are buying the cars because of their ad campaigns.
If it was due to discount scheme then the dealers must have passed on the discount to customers.
Option C includes this point that customers are buying the cars at the non-discounted price and the dealers are making additional profits by not passing those discounts onto customers.
Hence, the company concludes that we could save money by not running the discount scheme.
Posted from my mobile device
Conclusion 2- To make more profits it should not use the discount scheme.
The question asks about conclusion 2.
The company does two things 1.provides discount to dealers
2.runs ad campaigns.
The company concludes that if the sales are good why do we need to run the discount scheme.
Maybe the consumers are buying the cars because of their ad campaigns.
If it was due to discount scheme then the dealers must have passed on the discount to customers.
Option C includes this point that customers are buying the cars at the non-discounted price and the dealers are making additional profits by not passing those discounts onto customers.
Hence, the company concludes that we could save money by not running the discount scheme.
Posted from my mobile device
