A certain start-up company that makes specialized computer games with

Question

A certain start-up company that makes specialized computer games with historical themes is to hold a meeting of the five partners. Prior to the meeting, three of the partners have circulated memos about Xanthia.

The amount of money we have spent on developing Xanthia has been much more than we have spent on any other of our games. The returns, as yet, have not been sufficient even to cover our costs. I propose a limit of $150,000 for next year's marketing budget for Xanthia. If sales do not rise by the end of the year to a level that would, if continued, lead to at least a modest profit on our investment by the end of two or three years, I suggest that we cut our losses and divert our attention to other games.As yet our exciting new game, Xanthia has not gained attention in the media. I would like to see a sizable budget increase this coming year to something in the order of $300,000 for advertising. I feel that once we reach a certain level of media exposure, further expense will be minimal as knowledge of the product will spread by word of mouth and the social media. Without this initial push, the game might languish and our company might never recover the development costs, which have been much higher than the average for our other games.Xanthia adds a new dimension to our offerings. It is true that development costs have been high, but we should add the costs to the low costs of our other games and not, at least for the next two years, look at any game as a free-standing product. It is more important for us to grow our position in the market. To do this we have to launch more games this year. We should market Xanthia along with all the games we offer and as such we have to participate in specialist fairs and competitions, rather than advertising any one product in the press or on TV.

Apt0810 · Answer

1)No, since that only word is incorrect since it overlooks other person's views
Yes, since everyone comments on the development cost
No,since there is no absolute value given for the spending in the current year

2)Yes,since both of them are in favor that the product cost needs to be recovered but the founder says that the cost can be combined with other costs
Yes, since everyone focusses on some of the other changes in the marketing technique on terms of cost current practice etc

Posted from my mobile device

thinkvision · Answer

1)
a. Since the sentence uses an extreme word only - NO
b. Each of the three members agrees that the cost of developing this game is higher than the other games : YES
c. Not really sure, the sentence does not specify any amount for the current year spending : NO

2)
a. Both the Marketing head and Finance head discuss the marketing strategy exclusively for Xanthia game by increasing the marketing budget for the next year. : YES
b. All the three members are interested in discussing the market strategy to make the new game a success : YES

jj17 · Answer

Statement 2, 1st point, why attitude has to mean “what to do about high development cost”, couldn’t it simply be “if they find it high or not”
 
Anyone who understands this.. pls do tell

Posted from my mobile device

BottomJee · Answer

OFFICIAL EXPLANATION

1.1:  (NO). We know from his memo that the company founder is interested in launching new games. However, this point has not been addressed by either of the others and so we have no means of knowing their specific views on this issue. Not mentioning something cannot be taken for opposition. The word "only" is the best reason for rejecting this statement � it is too strong to be justified by the data.

1.2:  (YES). The finance person states that the costs have been higher than for any other game; the marketing person makes a similarly explicit statement. We can infer that the company founder believes the same because he makes two statements that taken together imply higher than averages costs: "development costs have been high" and "low costs of other games".

1.3:  (NO). There is no information in any of the memos that gives a clear indication of the amount spent in the current year. We can infer nothing about current levels from proposals of future limits.

2.1:  (YES). The finance and marketing experts both imply that the high development costs for one product need to be recovered, if possible, from boosting sales of that one product. However, the founder thinks that the products are best seen as a suite of offerings, and the development costs for one can clubbed with those of other products.

2.2:  (YES). The general information provided at the beginning of the prompt, clearly states that the memos were written in response to the agenda. Since all three focus on marketing strategies, it is obvious that this must be one of the points for discussion. (Of course we cannot infer that it is the only point.)

Sajjad1994 · Answer

Data Insights (DI) Butler 2023-24        Click here for Details ]

soumyap09 · Answer

Can you please review the question/answers? For Q1, 2 options are the same and answers are different.

Sajjad1994 · Answer

Fixed the typo, Thank you!

Official Explanation

1. It can be inferred that

Explanation

First statement: (NO).  We know from his memo that the company founder is interested in launching new games. However, this point has not been addressed by either of the others and so we have no means of knowing their specific views on this issue. Not mentioning something cannot be taken for opposition. The word "only" is the best reason for rejecting this statement it is too strong to be justified by the data.

Second statement: (YES).  The finance person states that the costs have been higher than for any other game; the marketing person makes a similarly explicit statement. We can infer that the company founder believes the same because he makes two statements that taken together imply higher than averages costs: "development costs have been high" and "low costs of other games".

Third statement: (NO).  There is no information in any of the memos that gives a clear indication of the amount spent in the current year. We can infer nothing about current levels from proposals of future limits.

ManifestDreamMBA · Answer

1. It can be inferred that

No  
  Only the company founder would be interested in launching new games in the next year. 
 Nowhere it is mentioned about the finance and marketing experts think regarding this. Thinking  only  the founder would be interested cannot be inferred  
 
   Yes   
  
  All three partners believe that the development costs for Xanthia have been above the average for the company's games.
We know that the averages are never more than the highest element being averaged. We already know Xanthia dev costs are more than the avg of the others. The cost of Xantia is therefore, going to be more than the overall avg

No  
  Less than $150,000 has been spent on marketing Xanthia in the current year. 
 How much has been spent already has not been mentioned. Only the proposed budgets are discussed by finance and marketing experts

2. It can be inferred that  
    Yes  
  
  The attitudes of the finance and marketing experts to development costs are more similar to each other than to the views of the company founder. 
 That's correct. Both the experts are looking at the Xanthia costs individually but founder is suggesting to all the costs across all projects as one  
 
   Yes  
  
  It is probable that one of the main points on the agenda for the meeting is marketing strategies. 
 That's correct. the proposed marketing budgets have been brought up by both experts and marketing tactics by the cofounder. This could be one of the agenda items for the meeting

mkeshri185 · Answer

It is true that development costs have been high, but we should add the costs to the low costs of our other games and not, at least for the next two years, look at any game as a free-standing product

this is the part of the Founder's statement.

For Q1 part 2
I dont know how can we conclude that 'Founder is saying the development cost of Xanthia is higher than other'? Founder indeed mentions that deveopment cost are high but he never compares with any other past/current project. He is just saying 'Yes it is high' Comparison never occurs in founders argument.

For Q2 part 1
We dont know what's the view of Founder on development cost so how can we make any comparison at all? We can't definitely make any assumption.

I dont know the concept of assuming. It is only random every time. Founder just said 'development cost are high' but never did any comparison still we assumed that he thinks that dev cost are higher than average. Also he never talks about dev cost or his view still we are comparing his views with other 2 person.

I have one example. Suppose two persons are discussing their marks are higher than average and i jump in the discussion saying my marks is also high. What does this mean? does my marks is also higher than average? does it unexpectedly high? I did not say any of this. what if my next sentence is something like this' My marks are indeed high, i agree, but still i got lower than average. or 'I agree my marks are high , i agree , but still it is lower than you all'

I bet if this was a 805+ question it would not be assumed. So this means we need to expand or contract out extent of assumption on the basis of difficulty level? If so then how can we know what's the level in real exam?

sspiral2556 · Answer

What is the source of this question?

Bunuel · Answer

The source is unknown, so it is tagged as Other. It is not an official question.

A certain start-up company that makes specialized computer games with

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

Yes	No
		Only the company founder would be interested in launching new games in the next year.
		All three partners believe that the development costs for Xanthia have been above the average for the company's games.
		Less than $150,000 has been spent on marketing Xanthia in the current year.

Yes	No
		The attitudes of the finance and marketing experts to development costs are more similar to each other than to the views of the company founder.
		It is probable that one of the main points on the agenda for the meeting is marketing strategies.

GMAT Multi-Source Reasoning (MSR) Questions

A certain start-up company that makes specialized computer games with

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards