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# Bell Corporation

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Intern
Joined: 18 May 2015
Posts: 44

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04 Jun 2015, 05:04
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Difficulty:

5% (low)

Question Stats:

85% (01:01) correct 15% (01:26) wrong based on 100 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

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Sam GM

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Joined: 21 Aug 2014
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GMAT 1: 610 Q49 V25
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04 Jun 2015, 05:31
1
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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Intern
Status: Don't watch the clock,Do what it does, Keep Going.
Joined: 10 Jan 2017
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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.
Re: Bell Corporation   [#permalink] 17 Sep 2017, 08:03
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