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An eyeglass manufacturer tried to boost sales for the summer

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An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 04 May 2007, 12:06
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Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 83
Page: 151
Difficulty:


An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter.

Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful performance of the summer quarter?

(A) In general, a distributor's orders for the summer quarter are no higher than those for the spring quarter.
(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and radio advertising in those distributors' sales areas.
(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were unusually low a year earlier.
(D) The distributors who qualified for the manufacturer's special discount were free to decide how much of that discount to pass on to their own customers.
(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 08 Aug 2018, 17:47

Clarifying the meaning of Choice C


gmatacer40 wrote:
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.

Choice (C) reads:
Quote:
(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were unusually low a year earlier.

Choice (C) does not specify a particular quarter. It tells us about orders placed a year earlier than whatever orders are being considered at a given moment. So we will accept this statement as true for summer and fall, and we'll count one year back from either quarter.

Choice B vs. Choice E


vasuca10 wrote:
Experts mikemcgarry GMATNinja VeritasPrepKarishma egmat Please guide for this question.......


Let's take one more look at the argument:
Quote:
An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter.

Conclusion: Offering the kind of discount that resulted in more net profits during the summer will achieve a similar gain in net profits in the fall.

Here's how the author reaches this conclusion:

  • During the summer quarter, the manufacturer offered a discount to distributors whose orders exceeded their orders from one year prior by at least 20%.
  • Many distributors qualified for this discount. In other words, many distributors ended up ordering 20%+ more than they had one year prior.
  • This increase in orders resulted in a healthy gain in net profits for the manufacturer.
  • Therefore, repeating this discount in the fall will result in a similar increase in orders, which will result in a similar gain in net profits.

When breaking down the logic, two things jump out at me:

  • "sales" = "orders" in this argument. The only business relationship discussed is that between the manufacturer and distributors buying from the manufacturer.
  • The argument never explains why the distributors were attracted to the discount. Were these distributors really low on inventory as a result of a great spring quarter? Were the distributors excited by the chance to stock up in advance, at a discounted price? Were summer sales to the distributors' customers unusually high? We don't have a very good understanding of what motivates distributors to take advantage of the summer offer.

Quote:
Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful performance of the summer quarter?

Because we do not know the exact motivations of the distributors, we have a gap in logic that is painful to look at. We'd really, really like to get rid of that gap. :)

But let's keep in mind that the argument pertains to distributors who order merchandise from the manufacturer, and we're particularly concerned with whether distributors will increase their orders in the Fall quarter. Filling the gap in logic for why summer orders increased would be very satisfying, but the best answer choice will weaken the manufacturer's prediction about fall orders by distributors.

Quote:
(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and radio advertising in those distributors' sales areas.

vasuca10 wrote:
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.

AprajitaG wrote:
B- If the manufacturer had put inputs other than the discounts then they might have had an impact on sales & hence we cannot assume that the same similar growth in sale will happen in fall quarter- given that it is specified that manufacturer plans to repeat the same discount but is not mentioned that other inputs will also be repeated

Yes, choice (B) does identify another possible factor contributing to the increase in summer orders. But why can't we assume that the manufacturer will continue spending on advertising in these sales areas, especially since it seemed to work so well in the summer? Unless we are the told that the manufacturer has decided not to repeat this advertising spend, then it's still on the table for the fall. This choice gives us information about a tactic that could actually help the manufacturer repeat its success, not a flaw that would weaken the manufacturer's prediction. That's why we eliminate (B).

Quote:
(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.

AprajitaG wrote:
E- The distributors are overstocked for fall, but might choose to be even more overstocked. It might not necessarily result in failure of the plan.

Choice (E) cuts to the heart of the business relationship: how much will the distributors decide to order from the manufacturer? Furthermore, (E) is the only choice that gives us a concrete reason why distributors would not increase their orders in the fall. If they have plenty of stock, then it follows logically that they won't need to order more.

Even if we can think of a reason why distributors would continue buying, that hypothetical reason would not nullify what we're told in choice (E), which we must accept as true. If your stock is already overflowing, you probably won't be motivated to take advantage of the fall offer and further increase your stock.

Does this prove that the plan will fail? No, but (E) clearly points to a flaw in the plan and lowers our confidence that the plan will lead to an increase in net profits. That's why it's the best choice.

I hope this helps!
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 04 May 2007, 13:50
I will take a crack at this one.

B

Logically it would make sense that if a discount strategy works, a company should continue the strategy. However, if we can prove that the increased sales were actually caused by a different catalyst...which is what B offers.

If advertising was increased during the discount period it is not clear that the offered discount is the reason for increased performance.

E. is dealing with an inventory problem, but does not offer any reason for why the discount incentive would not work in the next quarter...
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 04 May 2007, 15:04
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E it is .
If the distributors are overstocked with the summers buying , they will not go for the discounted sale this time.

Acc. to me , B doesnt say that the reason for the success of the offer in summers was due to adverstising .
In general the reason of success is attributed to adverstising which can be possible in winters dicount plan as well.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 05 May 2007, 00:54
At first i narrowed it down to A vs E & picked A. But then reading it more closely, i thought E is rite one.

"The distributors’ ordering more goods in the summer quarter left them overstocked for the fall quarter"

It clearly states that the distributor ordered in excess in Summber & now since he already has an inventory, he would not like to order more.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 05 May 2007, 06:39
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(A) Compares the summer quarter with the spring quarter. Out of scope, it is about the next fall quarter.
(B) The manufacturer could increase the newspaper and
radio advertising in those distributors’ sales areas during the fall quarter, this is no flaw.

(C) Irrelevant, as long as the sell enoough sunglasses
(D) Irrelevant, the manufacturer only wants the sunglasses to be sold at a certain discount
(E) Which could be the reason that the sunglasses don't sell. Either the costumers have already enough sunglasses at home, so that they won't buy more or the shops are overstocked, because they wanted to qualify for the discount. Best answer! Cheers
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 24 Jul 2013, 08:37
So the problem here is eyeglass manufactures plans to use same strategy as they did in the last quarter. What if the distributor over stocks supply, since last quarter there was a discount. The same strategy won't work this quarter.

Option E explains the Flaw perfectly :)
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 25 Jun 2014, 15:57
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 19 Jan 2015, 15:28
Although I got my answer correct, but I pre-assumed something different than given in the answer choice. Please check whether this my pre-assumption is also correct:

The consumers had a demand for eyeglasses such as goggles in summer, but that demand reduced in fall as that was not the season goggles are meant for.

Thanks and Regards
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 14 Apr 2016, 08:54
manufacture concludes that fall quarter will have the same results as summer quarter.
Assumption: Everything will remain the same in fall as in summer.

Something along the lines of - in fall something is different compared to summer will undermine the assumption.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 14 Apr 2016, 10:58
B is a strengthener.
The ads will have affected final consumers buying from the resellers. Thus the stores sold well and will likely go for the blessed discount come fall.

B did not offer alternative cause as someone suggested.
Even if it did?
That's not what you are asked here.
But it didn't.

E said that the stores may not buy come fall cos they still got too many to sell.
The company's profit depends on the stores buying from them.

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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 20 May 2016, 02:34
soxy_topacio wrote:
Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 83
Page: 151
Difficulty:


An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter.

Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful performance of the summer quarter?

(A) In general, a distributor's orders for the summer quarter are no higher than those for the spring quarter.
(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and radio advertising in those distributors' sales areas.
(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were unusually low a year earlier.
(D) The distributors how qualified for the manufacturer's special discount were free to decide how much of that discount to pass on to their own customers.
(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.


This question is based on the flaw in which author assumes what has been true in the past would be true in the future as well. This is a universal flaw unless a premise is added in the argument saying that the conditions of the past and present are exactly similar. With this thought in mind we should only be searching for the choice which tells us that present scenario is different from past because of some reason. Also to speed up, read choice A and E first (this is personal approach). In this question option E tells how present scenario is different from past. so it is correct.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 24 May 2016, 04:26
in a "plan" argument , author plan to do something, our job is to find something which support or weaken the plan. this job is more simple than criticize an argument in which evidence and a conclusion are offered.

in short, this kind of argument is more easy, normally.

the most difficult job and the main job we have to do is to criticize the argument . if we focus on the criticization we can solve many types of questions, assumption question, weaken/strengthen questions, flaw question and evaluate questions of of which are based on criticization.

plan argument is more easily, normally.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 31 May 2016, 03:29
An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter.
.
In weaken questions, usually there would be some sort of logical flaw like an undue or broad assumption that can be guessed. From the above highlighted portion, it is clear that the assumption based on which the manufacturer concluded to repeat the same strategy is that all the supplies to the distributors have been sold out so more number can be sold during the fall. Option E clearly attacks this conclusion by bringing in an alternative explanation that if distributors had over ordered the products due to discounts, then some or more of them would be still remaining with them even after sales necessary for profits. So if that turns out to be true, then that would weaken the conclusion the most.

Option E is the best choice.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 19 Aug 2016, 05:33
Options B and E are good candidates.

B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and radio advertising in those distributors' sales areas.
If the manufacturer's plan depends on this, the manufacturer could invest in a newspaper and radio advertising campaign during the fall season in order to mitigate this risk and push the distributors' sales. On such case, this would not be a flaw of the manufacturer's plan.
E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 23 Nov 2016, 22:59
E it is.... clearly indicates that during next quarter the demand will be not more. so the plan of the manufacturer will not work.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 13 Mar 2017, 14:56
We need to find an answer giving reason why summer discount system will not work in fall
E-suggests one of the reasons
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 16 Apr 2017, 22:08
catgmat wrote:
(A) Compares the summer quarter with the spring quarter. Out of scope, it is about the next fall quarter.
(B) The manufacturer could increase the newspaper and
radio advertising in those distributors’ sales areas during the fall quarter, this is no flaw.

(C) Irrelevant, as long as the sell enoough sunglasses
(D) Irrelevant, the manufacturer only wants the sunglasses to be sold at a certain discount
(E) Which could be the reason that the sunglasses don't sell. Either the costumers have already enough sunglasses at home, so that they won't buy more or the shops are overstocked, because they wanted to qualify for the discount. Best answer! Cheers


well, you can also argue that even if some distributors are overstocked its still possible that others will make use of the discount this time. They should make it clear. There are also enough arguments for B. Of course you can argue that it is a flaw. Maybe exactly these expenses were responsible for the sales increase. Its stated that the manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter... So again they don't take into account that it might was the marketing expenses which were responsible for the increase in sales. Again niche clear to me.... gets my back up this stuff
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 10 Jun 2017, 19:28
An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter.

Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful performance of the summer quarter?

(A) In general, a distributor's orders for the summer quarter are no higher than those for the spring quarter.
--> irrelevant.

(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and radio advertising in those distributors' sales areas.
--> this option seems to strengthen the argument.

(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were unusually low a year earlier.

(D) The distributors how qualified for the manufacturer's special discount were free to decide how much of that discount to pass on to their own customers.
--> irrelevant.

(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.
--> correct.
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Re: An eyeglass manufacturer tried to boost sales for the summer  [#permalink]

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New post 13 Aug 2017, 05:19
An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter.

Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful performance of the summer quarter?

FLAW Questions : Key Point -
Suppose X will lead to Y.
To point a flaw, you need to prove - X may / will not lead to Y.


Now, with respect to this question,
Offering discounts for summer quarters leads to increased sales thus increase in net profits.
Our task in hand for this question -- Offering discounts for fall quarter may / will not lead to increased sales thus increase in net profits. Now, look at the options keeping this approach in mind.

(A) In general, a distributor's orders for the summer quarter are no higher than those for the spring quarter.
This option says - No. of distributor's orders for the summer quarter are either less than or equal to the distributor's orders for the spring quarter. But are we concerned about this comparison? :?: :?:

For summer quarter, a special discount would be offered to manufacturer's distributors if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. So, we are concerned about such a comparison and that too for the Summer quarter.

But Our conclusion is for the Fall quarter and we are not specifically given in the argument what exact special discount would be offered and what exactly would be the proportion of orders compared to last fall quarter. So, such a comparison is irrelevant. (the argument mentions only this -- the same sort of discount for the fall quarter.)

(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and radio advertising in those distributors' sales areas.
What else the manufacturers did to boost sales for the summer quarter is totally irrelevant to prove a flaw in reasoning for the fall quarter. So, incorrect.

(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were unusually low a year earlier.
This is talking about the distributors who qualified for the special discount. Again are we concerned for those distributors who qualified OR not qualified?? Does knowing this information will help in anyway to prove a flaw in manufacturer's reasoning for the fall quarter?? :?:

The Answer for the above question is YES. We are concerned who qualified and we need to be sure whether they will qualify this FALL Quarter or not.. for increased sales.. But how will this help in proving a flaw?? :idea: We need more details. So, Incorrect.

(D) The distributors who qualified for the manufacturer's special discount were free to decide how much of that discount to pass on to their own customers.
Totally irrelevant to the context in hand.

(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.
This proves that in the fall quarter, there will not be enough distributors' ordering goods in the fall quarter as they are overstocked and most of the distributors' who qualified for the special discount will be in the similar condition. This proves that -- Offering discounts for fall quarter may / will not lead to increased sales thus increase in net profits. Hence, this strengthens the mind set with which started looking into the options. Thus, this is the CORRECT ANSWER.
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