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A luxury apartment condo recently opened up along the Biltmore’s

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A luxury apartment condo recently opened up along the Biltmore’s [#permalink]

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New post 25 Aug 2015, 04:12
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A luxury apartment condo recently opened up along the Biltmore’s waterfront. Within the first two months, 80% of the standard units in the first ten of the condo’s twelve stories were sold. Nonetheless, only two of the eight penthouses, all of which are located in the top two stories of the building, have sold. In order to sell the remaining six penthouses, the corporation that owns the property, should drop the rate of the penthouses by 20%.

Which of the following, if true, would argue against the proposal above?

A) Typically, the very first unit to sell in a luxury condo is a standard unit.
B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.
C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.
D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories.
E) After the proposed discount each penthouse will only be 15% more costly than a standard unit.
[Reveal] Spoiler: OA

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Re: A luxury apartment condo recently opened up along the Biltmore’s [#permalink]

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New post 25 Aug 2015, 07:45
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A- In real life, yes . The standard unit are sold first. But the question is about the luxury condos. So incorrect.
B- out of scope. we are not concerned about their financial status.
C- If at all, this option strengthens the argument. Because if you think, then people will not be interested to buy a luxury condo facing away from the water front. That means the rate has to be reduced to sell the condos.
D- CORRECT. Because it weakens the argument. The author says that the rate has to be decreased. But this options states that there are many buyers interested in buying the condos. This means that there is no necessity to reduce the rates.
E- Out of scope. We are not asked anything about the pricing difference between standard and luxury.

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Re: A luxury apartment condo recently opened up along the Biltmore’s [#permalink]

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New post 05 Sep 2015, 21:58
Harley1980 wrote:
A luxury apartment condo recently opened up along the Biltmore’s waterfront. Within the first two months, 80% of the standard units in the first ten of the condo’s twelve stories were sold. Nonetheless, only two of the eight penthouses, all of which are located in the top two stories of the building, have sold. In order to sell the remaining six penthouses, the corporation that owns the property, should drop the rate of the penthouses by 20%.

Which of the following, if true, would argue against the proposal above?

A) Typically, the very first unit to sell in a luxury condo is a standard unit.
B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.
C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.
D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories.
E) After the proposed discount each penthouse will only be 15% more costly than a standard unit.


The solution given for selling the penthouses is that the rates/cost should be reduced, implying that it is because of the costs that they are not being sold. We have to find an answer which brings out that rates / cost is not the reason for the penthouses not being sold, instead there is some other reason.....
ANSWER - "D" brings out the same.........

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Re: A luxury apartment condo recently opened up along the Biltmore’s [#permalink]

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New post 08 Nov 2015, 00:49
Apartment condo has standard units and penthouses.
Most of standard units have been sold but only 2 penthouses have been sold.
Plan to offer 20 % discount on penthouses because they are not selling.

A) Typically, the very first unit to sell in a luxury condo is a standard unit.
This is consistent with information given , but this doesn't mean the last unit to sell is always a penthouse.

B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.
If this is true , the plan to offer discount will help to sell the penthouses.

C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.
We don't have any information whether people prefer waterfront or they don't .

D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories.
The demand is present but the management is evaluating the applicants based on their credit history. Therefore , this statement argues against the proposal to offer discounts.

E) After the proposed discount each penthouse will only be 15% more costly than a standard unit.
If penthouses are not selling at all , selling them at a lower margin is better than not selling them at all.

Answer D
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Re: A luxury apartment condo recently opened up along the Biltmore’s [#permalink]

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New post 08 Oct 2017, 09:54
Harley1980 wrote:
A luxury apartment condo recently opened up along the Biltmore’s waterfront. Within the first two months, 80% of the standard units in the first ten of the condo’s twelve stories were sold. Nonetheless, only two of the eight penthouses, all of which are located in the top two stories of the building, have sold. In order to sell the remaining six penthouses, the corporation that owns the property, should drop the rate of the penthouses by 20%.

Which of the following, if true, would argue against the proposal above?
Underlined portion are the two premises.

A) Typically, the very first unit to sell in a luxury condo is a standard unit.That could be true but is out of scope of the para
B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.Mild strengthener
C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.What about other 2? Also, we have no information on the demand of penthouses basis where it is facing
D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories. In that case, they should not drop the price. Bang on!
E) After the proposed discount each penthouse will only be 15% more costly than a standard unitKilling the margin is not recommended. This is strengthening the statement .

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Re: A luxury apartment condo recently opened up along the Biltmore’s [#permalink]

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New post 09 Oct 2017, 21:31
A luxury apartment condo recently opened up along the Biltmore’s waterfront. Within the first two months, 80% of the standard units in the first ten of the condo’s twelve stories were sold. Nonetheless, only two of the eight penthouses, all of which are located in the top two stories of the building, have sold. In order to sell the remaining six penthouses, the corporation that owns the property, should drop the rate of the penthouses by 20%.

Which of the following, if true, would argue against the proposal above?

Argument says that to sell the remaining six penthouses the corporation should drop the rate.

Missing information: The author of this argument assumes that there is no other way to sell the remaining penthouses. And also it is expensive to be sold out that's why the discount came in the picture.

If we can prove that there are other ways to sell these penthouses then the conclusion will be weakened.

D exactly does the same thing. It suggests there they have buyers, it's just management which is taking time to selecting them. That means if the corporation already has the buyers ready then why would they want to discount their remaining penthouses. D is our answer.

A) Typically, the very first unit to sell in a luxury condo is a standard unit. Irrelevant
B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery. If the city has recently suffered a recession then giving discount may be the good option. So this option, if anything, strengthens the argument.
C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront. Same as B.

E) After the proposed discount each penthouse will only be 15% more costly than a standard unit. This is irrelevant to know what will happen after penthouses are sold out.

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Re: A luxury apartment condo recently opened up along the Biltmore’s   [#permalink] 09 Oct 2017, 21:31
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A luxury apartment condo recently opened up along the Biltmore’s

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