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Benito's Pizzeria has been losing money for the last three

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Joined: 13 Aug 2009
Posts: 533

Kudos [?]: 74 [0], given: 46

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08 Sep 2010, 09:45
gmatcracker2010 wrote:
Benito's Pizzeria has been losing money for the last three months. Benito's mother has advised him to cut prices in order to increase the number of customers to the pizzeria. Benito, however, has decided to increase prices instead.
Which of the following, if true, provides the strongest evidence that Benito's plan has a better chance of making the pizzeria profitable than his mother's plan?
A Benito could expand his customer base by opening a second location and advertising heavily.
Does not ensure profitability.
B The pizzeria is already producing as many pizzas as its ovens can handle.
Benito's mother's recommendation of increasing pizzas sold will not work in this answer choice.
C Benito has kept essentially the same items on his menu for ten years.
Not relevant to price/volumes/profitability.
D Benito's business has suffered ever since a low-priced national chain moved in next door.
If there is low priced competition next door, rising prices will not help.
E Benito's top-selling item, the large pepperoni pizza, sells for \$8.99.
So?

The Oa is
[Reveal] Spoiler:
b

Pleae explain why OA is not A but ...

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Kudos [?]: 74 [0], given: 46

Re: pizzaria   [#permalink] 08 Sep 2010, 09:45

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