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A year ago, Dietz Foods launched a yearlong advertising campaign for its canned tuna. Last year Dietz sold 12 million cans of tuna compared to the 10 million sold during the previous year, an increase directly attributable to new customers brought in by the campaign. Profits from the additional sales, however, were substantially less than the cost of the advertising campaign. Clearly, therefore, the campaign did nothing to further Dietz's economic interests.

Which of the following, if true, most seriously weakens the argument?

(A) Sales of canned tuna account for a relatively small percentage of Dietz Foods' profits.

(B) Most of the people who bought Dietz's canned tuna for the first time as a result of the campaign were already loyal customers of other Dietz products.

(C) A less expensive advertising campaign would have brought in significantly fewer new customers for Dietz's canned tuna than did the campaign Dietz Foods launched last year.

(D) Dietz made money on sales of canned tuna last year.

(E) In each of the past five years, there was a steep, industry-wide decline in sales of canned tuna.

ID: 100890
­

Hi GMATNinja

Can we say option B is wrong due to following reasoning?
This has No Impact, this option doesn’t provide any info on the author’s conclusion. This talks about an increase in customers not attributable to the campaign because the option is talking about loyal customers who are not "new" but "existing" customers.
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(C) A less expensive advertising campaign would have brought in significantly fewer new customers for Dietz's canned tuna than did the campaign Dietz Foods launched last year.

This supports the original decision (the campaign was more effective than cheaper alternatives), but it doesn’t change the fact that the campaign cost more than the profits it generated.

So it defends the form of the campaign, but not its economic outcome.

Doesn’t weaken the conclusion directly.

--------------------------------------

(E) In each of the past five years, there was a steep, industry-wide decline in sales of canned tuna.

This changes everything. It implies that without the campaign, Dietz’s sales likely would have dropped like the rest of the industry.

Instead, Dietz saw a 20% increase.

Therefore, the campaign not only increased sales, but reversed a trend, which may have long-term benefits (e.g., maintaining market share, brand strength).

Strongly weakens the idea that the campaign "did nothing" for Dietz’s economic interests.

Correct Answer: (E)
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Point to prove is that campaign brought benefits & "is" economically justified & not that alternate campaigns "might have been" less effective.
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If the campaign was only launched last year and the previous year is where 10 million was sold, how can you conclude that if it wasn't for the campaign sales would've been lesser than 10 million? The campaign was only launched after the 10 million was sold.
GMATNinja
This passage has a readily identifiable conclusion, so let's start with that. We are told that, "a year ago, Dietz Foods launched a yearlong advertising campaign for its canned tuna." The conclusion of the passage is that "the campaign did nothing to further Dietz's economic interests."

How does the author arrive at that conclusion?

  • Dietz sold 12 million cans of tuna last year (while the ad campaign was running).
  • Dietz sold only 10 million cans of tuna the previous year (before the ad campaign was started).
  • We are specifically told that this increase in sales was "directly attributable to new customers brought in by the campaign." Because this information is given, we don't have to worry about whether any assumptions are required to arrive at this intermediate conclusion.
  • However, profits from these additional sales were substantially less the cost of the ad campaign.
  • Since the costs substantially exceeded the profits, the author concludes that the ad campaign did nothing to further the company's economic interests.

Now we need to find an answer choice that, if true, most seriously weakens this argument:


Last year, the cost of the ad campaign exceeded the additional profits created by the ad campaign. Based on those facts, the author concludes that the campaign did not further the company's economic interests. Regardless of the percentage of total profits accounted for by sales of canned tuna, if costs exceeded profits, according to the author, the campaign did not further the company's economic interests. Choice (A) does not interfere with this logic and can be eliminated.


A counterargument to the author's argument might be that the ad campaign expanded Dietz's customer base and, thus, that the initial cost of the ad campaign might be outweighed by increased profits in years to come. However, choice (B) eliminates this possible counterargument and thus strengthens the author's argument. Since we are looking for a weakening statement, choice (B) can be eliminated.


Choice (C) does not change the fact that the cost of last year's ad campaign exceeded the additional profits created by the ad campaign last year. Choice (C) does not impact the author's reasoning and, thus, can be eliminated.


We are told that Dietz profited from the additional sales ("Profits from the additional sales..."). Choice (D) does not give us any new information and does not change the fact that the campaign's costs exceeded the additional profits last year. Eliminate (D).


According to the author's argument, the company would have been better off economically if it had not run the ad campaign. The ad campaign seemingly increased costs more than it increased profits. This analysis rests on the assumption that profits would have remained the same (compared to the previous year) if the ad campaign had not been run.

But what if profits would have decreased if the ad campaign had not been run? In that case, we would have to compare the cost of the ad campaign not just to the increase in profits but to the sum of the increase in profits and the potential profit loss. Perhaps the cost of the ad campaign exceeded this sum, in which case the author's logic would fail. Choice (E) allows for this possibility by suggesting that Dietz's sales of canned tuna would have been much less than 10 million if it weren't for the ad campaign.

Choice (E) most seriously weakens the author's argument and, thus, is the best answer.
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Ishan2001
If the campaign was only launched last year and the previous year is where 10 million was sold, how can you conclude that if it wasn't for the campaign sales would've been lesser than 10 million? The campaign was only launched after the 10 million was sold.
We don't know for sure what would have happened. But if (E) is true, then we do know that there was a steep, industry-wide decline in sales of canned tuna in each of the past five years. That statistic includes last year (the year in which Dietz sold 12 million cans of tuna).

If all we knew was that (1) there was a steep, industry-wide decline in sales of canned tuna last year and (2) Dietz sold 10 million cans of tuna the previous year, we'd expect sales last year to be LESS than 10 million. Again, we have no way of KNOWING what would have happened, but, if (E) is true, then the available evidence would suggest that Dietz sold fewer than 10 million cans last year.

But they actually sold 12 million, which is reason to belief that the ad campaign actually did help.

For more on that, check out this post: https://gmatclub.com/forum/a-year-ago-d ... l#p3004433.

A full explanation of this question can be found here: https://gmatclub.com/forum/a-year-ago-d ... l#p1941975.
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