Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 26 May 2017, 14:04

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Because postage rates are rising, Home Decorator magazine

Author Message
TAGS:

### Hide Tags

VP
Joined: 14 May 2006
Posts: 1404
Followers: 5

Kudos [?]: 187 [5] , given: 0

Because postage rates are rising, Home Decorator magazine [#permalink]

### Show Tags

13 Aug 2006, 17:32
5
KUDOS
32
This post was
BOOKMARKED
00:00

Difficulty:

55% (hard)

Question Stats:

63% (02:37) correct 37% (01:52) wrong based on 1944 sessions

### HideShow timer Statistics

Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 71
Page: 145
Difficulty:

Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted.

Which of the following, if true, provides the strongest evidence that the magazine's profits are likely to decline if the plan is instituted?

(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
(B) The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity of the magazine's articles than about a possible loss of the current high quality of its articles.
(C) Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription price were increased.
(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
(E) Production costs for the magazine are expected to remain stable
[Reveal] Spoiler: OA
If you have any questions
New!
VP
Joined: 29 Dec 2005
Posts: 1343
Followers: 10

Kudos [?]: 62 [0], given: 0

### Show Tags

13 Aug 2006, 17:36
here too D..
Senior Manager
Joined: 31 May 2006
Posts: 369
Location: Phoenix AZ
Followers: 1

Kudos [?]: 20 [1] , given: 0

### Show Tags

13 Aug 2006, 19:46
1
KUDOS
InDeed.

Direct impact on the profits of the mag.
SVP
Joined: 30 Mar 2006
Posts: 1730
Followers: 1

Kudos [?]: 82 [0], given: 0

### Show Tags

13 Aug 2006, 21:43
Will go with D.

Number of issue decreases, also advertisers will maintain the current level of advertising which is based on the number of issues published.
Current Student
Joined: 29 Jan 2005
Posts: 5221
Followers: 26

Kudos [?]: 403 [0], given: 0

### Show Tags

14 Aug 2006, 06:49

2:32

VP
Joined: 14 May 2006
Posts: 1404
Followers: 5

Kudos [?]: 187 [1] , given: 0

### Show Tags

14 Aug 2006, 13:02
1
KUDOS
OA is D
Senior Manager
Joined: 15 Jan 2008
Posts: 285
Followers: 2

Kudos [?]: 42 [0], given: 3

Because postage rates are rising, Home Decorator magazine [#permalink]

### Show Tags

14 Mar 2008, 11:57
Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine’s plan is instituted.

Which of the following, if true, provides the strongest evidence that the magazine’s profits are likely to decline if the plan is instituted?

(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
(B) The majority of the magazine’s subscribers are less concerned about a possible reduction in the quantity of the magazine’s articles than about a possible loss of the current high quality of its articles.
(C) Many of the magazine’s long-time subscribers would continue their subscriptions even if the subscription price were increased.
(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
(E) Production costs for the magazine are expected to remain stable.

Last edited by WaterFlowsUp on 13 Oct 2013, 23:03, edited 1 time in total.
CEO
Joined: 17 Nov 2007
Posts: 3586
Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40
Followers: 575

Kudos [?]: 3981 [0], given: 360

### Show Tags

14 Mar 2008, 12:41
D

...Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. .....

(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.

_________________

HOT! GMAT TOOLKIT 2 (iOS) / GMAT TOOLKIT (Android) - The OFFICIAL GMAT CLUB PREP APP, a must-have app especially if you aim at 700+ | PrepGame

SVP
Joined: 29 Aug 2007
Posts: 2476
Followers: 70

Kudos [?]: 774 [0], given: 19

### Show Tags

14 Mar 2008, 22:33
Neochronic wrote:
Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine’s plan is instituted.Which of the following, if true, provides the strongest evidence that the magazine’s profits are likely to decline if the plan is instituted?

(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
(B) The majority of the magazine’s subscribers are less concerned about a possible reduction in the quantity of the magazine’s articles than about a possible loss of the current high quality of its articles.
(C) Many of the magazine’s long-time subscribers would continue their subscriptions even if the subscription price were increased.
(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
(E) Production costs for the magazine are expected to remain stable.
D. its like a verbal math-type question.
_________________

Gmat: http://gmatclub.com/forum/everything-you-need-to-prepare-for-the-gmat-revised-77983.html

GT

Director
Joined: 05 Jan 2008
Posts: 690
Followers: 5

Kudos [?]: 472 [0], given: 0

### Show Tags

14 Mar 2008, 22:53
This is a clear D
(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.-> irrelevant, eliminate it
(B) The majority of the magazine’s subscribers are less concerned about a possible reduction in the quantity of the magazine’s articles than about a possible loss of the current high quality of its articles.-> quality of articles would remain same so this is not an issue,eliminate it

(C) Many of the magazine’s long-time subscribers would continue their subscriptions even if the subscription price were increased.-> this would actually increase the profits, however increase of price is not the questions, thus irrelevant, eliminate it

(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.->Thus if the company reduces the # of magazines per year to 1/2 then the company clearly loosed 1/2 of the revenue generated on the advertising,

(E) Production costs for the magazine are expected to remain stable.-> irrelevant, eliminate it
_________________

Persistence+Patience+Persistence+Patience=G...O...A...L

VP
Joined: 17 Jun 2008
Posts: 1381
Followers: 8

Kudos [?]: 329 [0], given: 0

Because postage rates are rising, Home Decorator magazine [#permalink]

### Show Tags

08 Aug 2008, 11:38
Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine’s plan is instituted.
Which of the following, if true, provides the strongest evidence that the magazine’s profits are likely to decline if the plan is instituted?
(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
(B) The majority of the magazine’s subscribers are less concerned about a possible reduction in the quantity of the magazine’s articles than about a possible loss of the current high quality of its articles.
(C) Many of the magazine’s long-time subscribers would continue their subscriptions even if the subscription price were increased.
(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
(E) Production costs for the magazine are expected to remain stable.
_________________

cheers
Its Now Or Never

Director
Joined: 10 Sep 2007
Posts: 943
Followers: 8

Kudos [?]: 303 [0], given: 0

### Show Tags

08 Aug 2008, 11:46
IMO D. If advertisers still spend same amount per issue, then advertising revenue will go down.
VP
Joined: 17 Jun 2008
Posts: 1381
Followers: 8

Kudos [?]: 329 [0], given: 0

### Show Tags

08 Aug 2008, 19:33
abhijit_sen wrote:
IMO D. If advertisers still spend same amount per issue, then advertising revenue will go down.

Why not A ,since A also affects the profit?
_________________

cheers
Its Now Or Never

Senior Manager
Joined: 06 Apr 2008
Posts: 437
Followers: 1

Kudos [?]: 155 [0], given: 1

### Show Tags

08 Aug 2008, 19:58
spriya wrote:
Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine’s plan is instituted.
Which of the following, if true, provides the strongest evidence that the magazine’s profits are likely to decline if the plan is instituted?
(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
(B) The majority of the magazine’s subscribers are less concerned about a possible reduction in the quantity of the magazine’s articles than about a possible loss of the current high quality of its articles.
(C) Many of the magazine’s long-time subscribers would continue their subscriptions even if the subscription price were increased.
(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
(E) Production costs for the magazine are expected to remain stable.

IMO D)
Senior Manager
Joined: 06 Apr 2008
Posts: 437
Followers: 1

Kudos [?]: 155 [2] , given: 1

### Show Tags

08 Aug 2008, 20:00
2
KUDOS
spriya wrote:
abhijit_sen wrote:
IMO D. If advertisers still spend same amount per issue, then advertising revenue will go down.

Why not A ,since A also affects the profit?

Because of increase in postal rates company has devised the plan to reduce issues into half. So this part is already covered.
VP
Joined: 17 Jun 2008
Posts: 1381
Followers: 8

Kudos [?]: 329 [0], given: 0

### Show Tags

09 Aug 2008, 00:07
nmohindru wrote:
spriya wrote:
abhijit_sen wrote:
IMO D. If advertisers still spend same amount per issue, then advertising revenue will go down.

Why not A ,since A also affects the profit?

Because of increase in postal rates company has devised the plan to reduce issues into half. So this part is already covered.

oh ok my doubt cleared !!
OA is D
_________________

cheers
Its Now Or Never

BSchool Forum Moderator
Joined: 02 Oct 2009
Posts: 593
GMAT 1: 530 Q47 V17
GMAT 2: 710 Q50 V36
Followers: 38

Kudos [?]: 354 [2] , given: 412

Because postage rates are rising Home Decorator magazine [#permalink]

### Show Tags

02 Apr 2010, 03:59
2
KUDOS
Because postage rates are rising，Home Decorator magazine plans to maximize its profits by reducing by one-half the number of issues it publishes each year．The quality of articles，the number of articles published per year, and the subscription price will not change．Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted．
Which of the following，if true，provides the strongest evidence that the magazine's profits are likely to decline if the plan is instituted?
(A) With the new postage rates，a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would．
(B) The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity of the magazine's articles than about a possible IOSS of the current high quality of its articles．
(C) Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription price were increased．
(D) Most of the advertisers that purchase advertising space In the magazine will continue to spend the same amount on advertising per issue as they have in the past．
(E) Production costs for the magazine are expected to remain stable
Intern
Joined: 02 Apr 2010
Posts: 40
Followers: 0

Kudos [?]: 3 [0], given: 2

### Show Tags

02 Apr 2010, 13:20
IMO D

D: Ads/issue.. if the number of issues are reduced to half, so is the revenue from ads
Manager
Joined: 07 Jan 2010
Posts: 244
Followers: 1

Kudos [?]: 8 [0], given: 16

### Show Tags

04 Apr 2010, 07:47
Good question.
If you don't read well enough you might miss the ad revenue/issue, and then A looks a good choice.
BSchool Forum Moderator
Joined: 02 Oct 2009
Posts: 593
GMAT 1: 530 Q47 V17
GMAT 2: 710 Q50 V36
Followers: 38

Kudos [?]: 354 [0], given: 412

### Show Tags

04 Apr 2010, 10:47
Thanku its D
Re: 13Q/Test14/1000CR   [#permalink] 04 Apr 2010, 10:47

Go to page    1   2   3    Next  [ 48 posts ]

Similar topics Replies Last post
Similar
Topics:
15 Because production costs are rising, a local theater 7 05 Mar 2017, 22:53
3 A recent survey conducted in the New Homes magazine 6 05 Apr 2017, 10:32
3 A recent survey conducted in the New Homes magazine 10 13 Apr 2017, 19:56
Because postage rates are rising Home Decorator magazine 0 29 Mar 2013, 07:16
Because postage rates are rising, Home Decorator magazine 0 07 May 2013, 01:21
Display posts from previous: Sort by