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Bell Corporation

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Joined: 18 May 2015
Posts: 46

Kudos [?]: 57 [0], given: 123

Bell Corporation [#permalink]

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New post 04 Jun 2015, 05:04
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  15% (low)

Question Stats:

86% (00:57) correct 14% (01:37) wrong based on 78 sessions

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Bell Corporation, a manufacturer of mobile handsets, has claimed to have become the leading seller of mobile handsets, in terms of units sold, in the country. According to latest figures released by all the handset manufacturers in the country, G. Bell Corporation managed to sell 80 per cent of the total handsets that it manufactured during the year whereas the market leader, H. Wells Corporation, managed to sell only 50 per cent of its total handsets.
Which of the following identifies a flaw in G. Bell Corporation’s reasoning?

A) It does not take into account H. Wells Corporation’s huge book of advance orders for handsets that need to be shipped during the next year

B) It incorrectly assumes that the current trend will continue into the next year as well

C) It makes no comparison of the average price at which G. Bell Corporation sold its handsets with the average price at which H. Wells Corporation sold its handsets

D) It does not take into account the total number of handsets sold by either manufacturer

E) It does not take into account the total market size for mobile handsets in the country
[Reveal] Spoiler: OA

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Kudos [?]: 57 [0], given: 123

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Re: Bell Corporation [#permalink]

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New post 04 Jun 2015, 05:31
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Premise:
BC sold 80% of total handsets it manufactured.
HW sold only 50% of total handsets it manufactured.
Conclusion:
BC is the leading seller in terms of units sold

Flaw: What if the total number of handsets sold by BC < HW?
Then the number of units sold by HW > BC and the conclusion will break down

Answer choice D reflects this flaw
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Re: Bell Corporation [#permalink]

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New post 17 Sep 2017, 08:03
In the above mentioned question it is mentioned that , G. Bell Corporation managed to sell 80 per cent of the total handsets that it manufactured during the year whereas the market leader, H. Wells Corporation, managed to sell only 50 per cent of its total handsets. But the biggest flaw ,which is quite obvious is the total number of handsets produced by either of the two companies as it is the deciding factor on which one will be greater.
Hence, answer is d

Kudos [?]: 17 [0], given: 45

Re: Bell Corporation   [#permalink] 17 Sep 2017, 08:03
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