GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 20 Jun 2018, 23:29

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.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

An eyeglass manufacturer tried to boost sales for the summer

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Mannheim Thread Master
User avatar
S
Status: It's now or never
Joined: 10 Feb 2017
Posts: 257
Location: India
GMAT 1: 650 Q40 V39
GPA: 3
WE: Consulting (Consulting)
GMAT ToolKit User
Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

Show Tags

New post 16 Aug 2017, 10:03
E is the correct choice - This statement properly identifies a flaw in the plan.
_________________

2017-2018 MBA Deadlines

Threadmaster for B-school Discussions
Class of 2019: Mannheim Business School
Class 0f 2020: HHL Leipzig

Intern
Intern
avatar
B
Joined: 28 Nov 2017
Posts: 19
Location: India
Concentration: General Management
GPA: 3.16
WE: Engineering (Energy and Utilities)
Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

Show Tags

New post 25 Apr 2018, 05:20
VeritasPrepKarishma, GMATNinja, egmat
Why specifically option E is better than C?
My confusion is that option C suggests that the increase in the sales number of manufacturer would be less since 20% of small quantity (quantum of sales done by eligible Retailers) would be less and from the argument, it is evident that in the summer quarter, the quantum of sales was so much as to offset the discount effect.
Option E suggests that most of the retailers wont avail the manufacturer's discount in fall quarter as they already have inventories left.

Hence, my doubt is how option e has an edge over c?
Expert Post
GMAT Club Verbal Expert
User avatar
P
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 1749
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: 340 Q170 V170
Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

Show Tags

New post 25 Apr 2018, 11:20
gmatacer40 wrote:
VeritasPrepKarishma, GMATNinja, egmat
Why specifically option E is better than C?
My confusion is that option C suggests that the increase in the sales number of manufacturer would be less since 20% of small quantity (quantum of sales done by eligible Retailers) would be less and from the argument, it is evident that in the summer quarter, the quantum of sales was so much as to offset the discount effect.
Option E suggests that most of the retailers wont avail the manufacturer's discount in fall quarter as they already have inventories left.

Hence, my doubt is how option e has an edge over c?

Even if (C) is true, the manufacturer's plan already worked for the summer. So even though orders were unusually low last year summer, the plan still increased profits from those distributors. The same could be true in the fall. Distributors whose orders were low last fall might increase their orders because of the discount this fall.

Regardless of the number of orders, the plan can still cause a healthy gain in profits if sales are boosted by more than 20%.
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor @ www.gmatninja.com (Now hiring!) | GMAT blog | Food blog | Notoriously bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

YouTube LIVE verbal webinars
Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja and @GMATNinjaTwo in your post. Priority is always given to official GMAT questions.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal

Intern
Intern
avatar
B
Joined: 28 Nov 2017
Posts: 19
Location: India
Concentration: General Management
GPA: 3.16
WE: Engineering (Energy and Utilities)
Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

Show Tags

New post 26 Apr 2018, 10:30
GMATNinja wrote:
gmatacer40 wrote:
VeritasPrepKarishma, GMATNinja, egmat
Why specifically option E is better than C?
My confusion is that option C suggests that the increase in the sales number of manufacturer would be less since 20% of small quantity (quantum of sales done by eligible Retailers) would be less and from the argument, it is evident that in the summer quarter, the quantum of sales was so much as to offset the discount effect.
Option E suggests that most of the retailers wont avail the manufacturer's discount in fall quarter as they already have inventories left.

Hence, my doubt is how option e has an edge over c?

Even if (C) is true, the manufacturer's plan already worked for the summer. So even though orders were unusually low last year summer, the plan still increased profits from those distributors. The same could be true in the fall. Distributors whose orders were low last fall might increase their orders because of the discount this fall.

Regardless of the number of orders, the plan can still cause a healthy gain in profits if sales are boosted by more than 20%.


GMATNinja
You have mentioned "So even though orders were unusually low last year summer". However, I am not able to deduce this specific information from the argument. According to me, if we take option C as true, it would talk about only fall quarter. So, we dont know whether orders were lw for summer quarter. please explain.
Manager
Manager
User avatar
B
Status: On the journey of achieving
Affiliations: Senior Manager, CA by profession, CFA(USA) Level 2
Joined: 06 Feb 2016
Posts: 95
Location: India
Concentration: Finance, Finance
GMAT 1: 560 Q44 V21
GPA: 3.82
WE: Other (Commercial Banking)
Reviews Badge CAT Tests
Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

Show Tags

New post 28 Apr 2018, 02:40
Experts mikemcgarry GMATNinja VeritasPrepKarishma egmat Please guide for this question.......I marked Option B as increased newspaper and advertising costs shall have a direct impact on net profit which is not considered in the argument.
_________________

Never Settle for something less than what you deserve...........

I've failed over and over and over again in my life and that is why I succeed--Michael Jordan
Kudos drives a person to better himself every single time. So Pls give it generously
Wont give up till i hit a 700+

Senior Manager
Senior Manager
User avatar
G
Joined: 12 Feb 2015
Posts: 262
Premium Member CAT Tests
An eyeglass manufacturer tried to boost sales for the summer [#permalink]

Show Tags

New post 01 Jun 2018, 00:36
If the closing stock for summer quarter will become the opening stock for fall quarter then will the distributors stock more if they are already overstocked?.

Since it is mentioned in the question stem that "Many distributors qualified for this discount.", means many distributors might not avail the discount as they are already over stocked.

Option E is the correct choice!! "The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter".
_________________

"Please hit :thumbup: +1 Kudos if you like this post" :student_man:

_________________
Manish :geek:

"Only I can change my life. No one can do it for me"

An eyeglass manufacturer tried to boost sales for the summer   [#permalink] 01 Jun 2018, 00:36

Go to page   Previous    1   2   [ 26 posts ] 

Display posts from previous: Sort by

An eyeglass manufacturer tried to boost sales for the summer

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


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

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.