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02 Mar 2022, 02:34
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
75% (01:26) correct
25%
(01:33)
wrong
based on 358
sessions
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Brand X designs and builds custom sneakers, one sneaker at a time. It recently announced plans to sell “The Gold Standard,” a sneaker that will cost five times more to manufacture than any other sneaker that has ever been created.
Which of the following, if true, most supports the prediction that The Gold Standard shoe line will be profitable?
(A) The Gold Standard will be favored by urban hipsters willing to pay exceptionally high prices for an exclusive product.
(B) Of the last four new sneakers that Brand X has released, three have sold at a rate that was higher than projected.
(C) A rival brand recently declared bankruptcy and ceased manufacturing shoes.
(D) The market for The Gold Standard will not be more limited than the market for other Brand X shoes.
(E) The Gold Standard is made using canvas that is more than five times the cost of the canvas used in most sneakers.
Which of the following, if true, most supports the prediction that The Gold Standard shoe line will be profitable?
(A) The Gold Standard will be favored by urban hipsters willing to pay exceptionally high prices for an exclusive product.
(B) Of the last four new sneakers that Brand X has released, three have sold at a rate that was higher than projected.
(C) A rival brand recently declared bankruptcy and ceased manufacturing shoes.
(D) The market for The Gold Standard will not be more limited than the market for other Brand X shoes.
(E) The Gold Standard is made using canvas that is more than five times the cost of the canvas used in most sneakers.
02 Mar 2022, 09:01
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Option B talks about a quantitative input which is related to profits with previous shoes. If they sold at higher prices so people are willing to pay and will purchase the Gold Standard shoes.
kungfury42
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02 Mar 2022, 15:50
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Bunuel
I think the answer to this should be A.
(A) If The Gold Standard has a market where customers (Urban Hipsters) are willing to pay exorbitantly high prices for an exclusive product, there is no reason why this shoe line will not be profitable.
(B) Though it is a tempting option choice, it must be noted that the past trends are not a 100% fail-proof way of assuring the same projections on the new product line. Additionally, we know that 25% (1 of the 4) products failed as well so we cannot be sure of the profitability of The Gold Standard. Eliminate B.
(C) Competition ceasing to exist does not guarantee profitability of this company's new product line. Eliminate C.
(D) If the new product line shares the same or bigger market than other shoe lines, it still doesn't guarantee (unlike option A) that the company will be able to find enough customers who will be willing to pay 5x prices and make The Gold Standard profitable. Eliminate D.
(E) What factors make up the manufacturing costs to go up are of no relevance in determining the product's profitability since we do not know the market perception of the same. Eliminate E.
