Last visit was: 22 May 2024, 08:37 It is currently 22 May 2024, 08:37
Toolkit
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.
Request Expert Reply

# Bell Corporation, a manufacturer of mobile handsets, has claimed to

SORT BY:
Tags:
Show Tags
Hide Tags
Math Expert
Joined: 02 Sep 2009
Posts: 93404
Own Kudos [?]: 625819 [0]
Given Kudos: 81931
Director
Joined: 26 Nov 2019
Posts: 846
Own Kudos [?]: 848 [1]
Given Kudos: 59
Location: South Africa
Director
Joined: 29 Oct 2015
Posts: 738
Own Kudos [?]: 333 [1]
Given Kudos: 478
Intern
Joined: 10 Apr 2024
Posts: 2
Own Kudos [?]: 2 [1]
Given Kudos: 2
Re: Bell Corporation, a manufacturer of mobile handsets, has claimed to [#permalink]
1
Kudos
I believe the answer to be D) as it says that G. Bell corp sold 80% of the total handsets it manufactured, whereas H. Wells sold 50% of the total handsets, we need more information to be able to compare the numbers.
Intern
Joined: 02 Jan 2024
Posts: 6
Own Kudos [?]: 0 [0]
Given Kudos: 14
Re: Bell Corporation, a manufacturer of mobile handsets, has claimed to [#permalink]
Why D when we???re given the percentage ratio of the total handsets sold ????
Intern
Joined: 16 Mar 2023
Posts: 47
Own Kudos [?]: 31 [0]
Given Kudos: 28
Bell Corporation, a manufacturer of mobile handsets, has claimed to [#permalink]

Michelle777 wrote:
Why D when we???re given the percentage ratio of the total handsets sold ????

­Hey @Michelle777,

The devil is in the details. The percentages given are not percentages of the total handsets sold in the market.

"Bell Corporation managed to sell 80 per cent of the total handsets that it manufactured during the year"

Observe the bolded portion. If Bell manufactued 1 million handsets in the year, 80% of it i.e., 0.8 million handsets were sold. 1 million in this example is not the number of handsets manufactured by the whole handset market, just what Bell manufactured!

"H. Wells Corporation, managed to sell only 50 per cent of its total handsets."

Here, observe the impact of "its". This means that if H.Wells manufactured 1 million handsets, it managed to sell only 50 percent i.e. 0.5 million of those.

Why is this important?
The author (Bell corp) has claimed that Bell has sold more units of handsets than anyone else. The justification provided is that they managed to sell 80% of what they produced, while the market leader, H. Wells, was able to sell only 50% of what they produced.

What is the flaw here?

Bell has ignored the actual number of handsets manufactured by both the companies. Just based on the percentages, it is somewhat comical to claim that Bell sold more phones.

Here is an example of why:
If Bell made 1 million handsets in the year, Bell sold 0.8 million handsets (80%). Great.
But if H. Wells made 10 million handsets in the year, then H. Wells sold 5 million handsets (50%).

Who actually sold more handsets? H.Wells. Then, without considering the actual number of handsets each company manufactured, is it sensible to conclude that Bell sold more handsets? Nope.

Hope this helps.
___
Harsha
Enthu about all things GMAT | Exploring the GMAT space | My website: gmatanchor.com
Math Expert
Joined: 02 Sep 2009
Posts: 93404
Own Kudos [?]: 625819 [0]
Given Kudos: 81931
Re: Bell Corporation, a manufacturer of mobile handsets, has claimed to [#permalink]
Expert Reply
Bunuel wrote:
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

­
This is a CR Butler Question

Check the links to other Butler Projects:

­

­

Official Explanation

Answer: D

Note that the argument states that G. Bell sold 80% of its total production (and not of the total market size) and H. Wells sold 50% of its total production. For the conclusion to be true, the argument has to assume that the total number of handsets manufactured by the two manufacturers are the same, but this may not be the case. D questions this fact and so is the correct answer.

(A) Future sales are outside the scope of the argument. For all you know, G. Bell could also have equally large advance order bookings.
(B) The argument assumes no such thing.
(C) The argument is concerned with units sold so the price is outside the scope.
(D) The correct answer.
(E) The total market size is again irrelevant because we don’t know how much of the total market size each of the two manufacturers account for.­
Re: Bell Corporation, a manufacturer of mobile handsets, has claimed to [#permalink]
Moderators:
GMAT Club Verbal Expert
6936 posts
GMAT Club Verbal Expert
238 posts
CR Forum Moderator
832 posts