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Bullseye Store recently implemented a cost cutting plan

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Bullseye Store recently implemented a cost cutting plan in which the number of cashiers working per shift was reduced. This reduction has increased the average time customers must wait in line to pay. Since the plan was implemented, the store manager has noticed several customers leaving the store without making a purchase after waiting in line for several minutes.

The information given, if true, most strongly supports which of the following?

A. Bullseye could reduce the number of sales lost by reassigning some employees from stocking shelves to working as cashiers.

B. The plan will result in a net increase profits only if cost savings resulting from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue.

C. Wait times at Bullseye are likely now longer than wait times at competing stores.

D. Most customers consider wait time an important factor in choosing where to shop.

E. Bullseye could decrease wait times by shifting cashiers to shifts during which there are more customers in the store.

Originally posted by arpitkansal on 10 Mar 2019, 11:29.
Last edited by gmat1393 on 10 Mar 2019, 20:16, edited 1 time in total.
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New post 12 Mar 2019, 08:21
why not d?

since customers left after waiting for long time.
since that's the part of conclusion why can't we select d?
confused.

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Re: Bullseye Store recently implemented a cost cutting plan  [#permalink]

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New post 12 Mar 2019, 08:49
B talks about profits but the argument does not say anything about profits.

IMO E , They can reduce the wait time by reassiging the cashiers from one shift to another

Please correct if this reasoning is wrong

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Re: Bullseye Store recently implemented a cost cutting plan  [#permalink]

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New post 12 Mar 2019, 08:50
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Main theme of the argument : is cost cutting ; and that is done to achieve profitability ..
since customer s are leaving the store w/o making a purchase ; it means that store is not making any sales/revenue
option B The plan will result in a net increase profits only if cost savings resulting from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue ; is on the lines of the argument and would be correct
IMO B

arpitkansal wrote:
Bullseye Store recently implemented a cost cutting plan in which the number of cashiers working per shift was reduced. This reduction has increased the average time customers must wait in line to pay. Since the plan was implemented, the store manager has noticed several customers leaving the store without making a purchase after waiting in line for several minutes.

The information given, if true, most strongly supports which of the following?

A. Bullseye could reduce the number of sales lost by reassigning some employees from stocking shelves to working as cashiers.

B. The plan will result in a net increase profits only if cost savings resulting from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue.

C. Wait times at Bullseye are likely now longer than wait times at competing stores.

D. Most customers consider wait time an important factor in choosing where to shop.

E. Bullseye could decrease wait times by shifting cashiers to shifts during which there are more customers in the store.
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New post 12 Mar 2019, 21:49
I am not able to understand why option D is wrong. Can someone please explain?
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New post 12 Mar 2019, 23:13
riyagoyal wrote:
I am not able to understand why option D is wrong. Can someone please explain?


See,the option states that the waiting time play an important role in selecting the place where they can shop. But the situation is,in a way, opposite.The customers have already selected the stuff and are standing in the queue n its then they encounter the waiting time. It means that waiting time played no role in selecting the place for shopping.

I hope this helps. :)

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Re: Bullseye Store recently implemented a cost cutting plan  [#permalink]

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New post 13 Mar 2019, 06:28
Bullseye Store recently implemented a cost cutting plan in which the number of cashiers working per shift was reduced. This reduction has increased the average time customers must wait in line to pay. Since the plan was implemented, the store manager has noticed several customers leaving the store without making a purchase after waiting in line for several minutes.

Type- inference

A. Bullseye could reduce the number of sales lost by reassigning some employees from stocking shelves to working as cashiers. - Incorrect; what if we lose more sales because the items were not stocked properly as there were fewer employees assigned the task of stocking shelves

B. The plan will result in a net increase in profits only if cost savings resulting from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue.- Correct
Net profit(or loss) because of plan= cost savings resulting from reductions in hourly wages - reduction in profits resulting from decreased purchases and revenue
On the other hand, if the reduction in profits resulting from decreased purchases and revenue is greater than cost savings resulting from reductions in hourly wages, then we would have a net loss because of this plan.

C. Wait times at Bullseye are likely now longer than wait times at competing stores.- Out of scope- we have no information about relative wait times

D. Most customers consider wait time an important factor in choosing where to shop. - Incorrect- the word 'most' makes this answer incorrect because the manager noticed several customers leaving the store without making a purchase after waiting in line for several minutes ; 'Some customers might consider wait time an important factor in choosing where to shop' would be a better answer

E. Bullseye could decrease wait times by shifting cashiers to shifts during which there are more customers in the store.- incorrect; We are not even sure if there is a surge in the number of customers during certain times in a day ; it may be that throughout the day there is a constant number of customers in the store.

Answer B

riyagoyal wrote:
I am not able to understand why option D is wrong. Can someone please explain?


riyagoyal,
Hope this helps!
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Re: Bullseye Store recently implemented a cost cutting plan  [#permalink]

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New post 13 Mar 2019, 09:30
While I went with B I am surprised by how easily most people dismissed option A.

I was tempted by A as it seemed to be an easy fix, however, after a second round of consideration option B won out.
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New post 10 Jul 2020, 06:23
Skywalker18 wrote:
Bullseye Store recently implemented a cost cutting plan in which the number of cashiers working per shift was reduced. This reduction has increased the average time customers must wait in line to pay. Since the plan was implemented, the store manager has noticed several customers leaving the store without making a purchase after waiting in line for several minutes.

Type- inference

A. Bullseye could reduce the number of sales lost by reassigning some employees from stocking shelves to working as cashiers. - Incorrect; what if we lose more sales because the items were not stocked properly as there were fewer employees assigned the task of stocking shelves

B. The plan will result in a net increase in profits only if cost savings resulting from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue.- Correct
Net profit(or loss) because of plan= cost savings resulting from reductions in hourly wages - reduction in profits resulting from decreased purchases and revenue
On the other hand, if the reduction in profits resulting from decreased purchases and revenue is greater than cost savings resulting from reductions in hourly wages, then we would have a net loss because of this plan.

C. Wait times at Bullseye are likely now longer than wait times at competing stores.- Out of scope- we have no information about relative wait times

D. Most customers consider wait time an important factor in choosing where to shop. - Incorrect- the word 'most' makes this answer incorrect because the manager noticed several customers leaving the store without making a purchase after waiting in line for several minutes ; 'Some customers might consider wait time an important factor in choosing where to shop' would be a better answer

E. Bullseye could decrease wait times by shifting cashiers to shifts during which there are more customers in the store.- incorrect; We are not even sure if there is a surge in the number of customers during certain times in a day ; it may be that throughout the day there is a constant number of customers in the store.

Answer B

riyagoyal wrote:
I am not able to understand why option D is wrong. Can someone please explain?


riyagoyal,
Hope this helps!


Option B brings out of the Stimulus information about computation of net profit. I am not sure how easily it is being said. BullsEyeStore can be a grocery store, and we have not considered wastage and may be other factors while computing the net profit. How likely is that such Answer Choices will come in GMAT Inference/Conclusion question where outside logic has turned out to be the correct answer?
I went for Option C even when the information of other store is not given, because it is considering the possibility of wait time to be longer than other stores, which I believe can be concluded from the Stimulus.

can someone please help with this?

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New post 10 Jul 2020, 06:45
thecoronafever B is generalizing whole plan no matter whether it's of confectionery or general store.
Option B states "The plan will only give positive result if cost savings from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue."
Let say the Bullseye store layoff 15 candidates and their hourly wage is 150$ bucks. Whereas the lose of revenue from losing customers on an hourly average is 100$. Therefore the total revenue from the overall plan is 50$ but if the whole planed worked opposite there would have been lose. So it's the only statement validating the situation given in the passage.

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New post 10 Jul 2020, 06:59
yashikaaggarwal wrote:
thecoronafever B is generalizing whole plan no matter whether it's of confectionery or general store.
Option B states "The plan will only give positive result if cost savings from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue."
Let say the Bullseye store layoff 15 candidates and their hourly wage is 150$ bucks. Whereas the lose of revenue from losing customers on an hourly average is 100$. Therefore the total revenue from the overall plan is 50$ but if the whole planed worked opposite there would have been lose. So it's the only statement validating the situation given in the passage.

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Well, you might have not again considered the wastage in picture. In Option B, decrease purchases means decrease in sales.

Now, let me present with the example of grocery:
Suppose, the store is getting grocery and since customers are not leaving the grocery, that grocery is getting wasted, and that's the loss outside of reduced sales or revenue and thus is not captured within the Option B. There might be other factors in computation of net profit apart from just reduced sales or revenue which might not be considered and thus, rightness of this Option B relies on that the fact that "only reduced sales or revenue, or cost saved from employing less staff are enough to compute the net profit" is well established. Is it really?
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New post 10 Jul 2020, 07:05
thecoronafever wrote:
yashikaaggarwal wrote:
thecoronafever B is generalizing whole plan no matter whether it's of confectionery or general store.
Option B states "The plan will only give positive result if cost savings from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue."
Let say the Bullseye store layoff 15 candidates and their hourly wage is 150$ bucks. Whereas the lose of revenue from losing customers on an hourly average is 100$. Therefore the total revenue from the overall plan is 50$ but if the whole planed worked opposite there would have been lose. So it's the only statement validating the situation given in the passage.

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Well, you might have not again considered the wastage in picture. In Option B, decrease purchases means decrease in sales.

Now, let me present with the example of grocery:
Suppose, the store is getting grocery and since customers are not leaving the grocery, that grocery is getting wasted, and that's the loss outside of reduced sales or revenue and thus is not captured within the Option B. There might be other factors in computation of net profit apart from just reduced sales or revenue which might not be considered and thus, rightness of this Option B relies on that the fact that "only reduced sales or revenue, or cost saved from employing less staff are enough to compute the net profit" is well established. Is it really?

There are many possibilities except what is stated but we don't consider that in GMAT. Keep that in mind, we never consider possible cases In GMAT but what is stated in passage. Since the passage don't mention the inventory wastage or profit. We can't consider that.
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Re: Bullseye Store recently implemented a cost cutting plan  [#permalink]

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New post 13 Jul 2020, 20:57
thecoronafever wrote:
Skywalker18 wrote:
Bullseye Store recently implemented a cost cutting plan in which the number of cashiers working per shift was reduced. This reduction has increased the average time customers must wait in line to pay. Since the plan was implemented, the store manager has noticed several customers leaving the store without making a purchase after waiting in line for several minutes.

Type- inference

A. Bullseye could reduce the number of sales lost by reassigning some employees from stocking shelves to working as cashiers. - Incorrect; what if we lose more sales because the items were not stocked properly as there were fewer employees assigned the task of stocking shelves

B. The plan will result in a net increase in profits only if cost savings resulting from reductions in hourly wages exceed the reduction in profits resulting from decreased purchases and revenue.- Correct
Net profit(or loss) because of plan= cost savings resulting from reductions in hourly wages - reduction in profits resulting from decreased purchases and revenue
On the other hand, if the reduction in profits resulting from decreased purchases and revenue is greater than cost savings resulting from reductions in hourly wages, then we would have a net loss because of this plan.

C. Wait times at Bullseye are likely now longer than wait times at competing stores.- Out of scope- we have no information about relative wait times

D. Most customers consider wait time an important factor in choosing where to shop. - Incorrect- the word 'most' makes this answer incorrect because the manager noticed several customers leaving the store without making a purchase after waiting in line for several minutes ; 'Some customers might consider wait time an important factor in choosing where to shop' would be a better answer

E. Bullseye could decrease wait times by shifting cashiers to shifts during which there are more customers in the store.- incorrect; We are not even sure if there is a surge in the number of customers during certain times in a day ; it may be that throughout the day there is a constant number of customers in the store.

Answer B

riyagoyal wrote:
I am not able to understand why option D is wrong. Can someone please explain?


riyagoyal,
Hope this helps!


Option B brings out of the Stimulus information about computation of net profit. I am not sure how easily it is being said. BullsEyeStore can be a grocery store, and we have not considered wastage and may be other factors while computing the net profit. How likely is that such Answer Choices will come in GMAT Inference/Conclusion question where outside logic has turned out to be the correct answer?
I went for Option C even when the information of other store is not given, because it is considering the possibility of wait time to be longer than other stores, which I believe can be concluded from the Stimulus.

can someone please help with this?

DmitryFarber VeritasKarishma GMATNinja


We have to assume that everything else stays the same. When we say that fewer cashiers were retained to cut cost, the only impact we know is that cost was cut. Next the argument tells us that people have been dropping out of purchasing. So now we know that fewer cashiers has resulted in loss in revenue.
We can say that the plan will lead to higher profit only if (necessary condition) 'money saved' is more than 'money lost'. We still may not get higher profit because it may still not be sufficient (because of other factors). But it is certainly necessary. If money lost because of customers dropping purchases is higher, anyway higher profit cannot be achieved.
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Re: Bullseye Store recently implemented a cost cutting plan  [#permalink]

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New post 14 Jul 2020, 15:03
I've my doubts with option B. The text says the number of cashiers working per shift have been reduced. The hourly wages remain the same, for each cashier. So if earlier 5 were working, at a pay of say Rs 30000/month, and now 4 are working, the overall wage that the employer has to pay has gone down by Rs 30000/month, but is it okay to interpret it as reduction in hourly wages ?
What I'm not comfortable about is calling reduction in number of employees as reduction in hourly wages.
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Re: Bullseye Store recently implemented a cost cutting plan   [#permalink] 14 Jul 2020, 15:03

Bullseye Store recently implemented a cost cutting plan

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