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# Carter automotive manufactures both luxury cars and economy cars. Howe

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Manager
Joined: 10 Apr 2018
Posts: 180
Carter automotive manufactures both luxury cars and economy cars. Howe  [#permalink]

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27 Jul 2018, 10:32
3
00:00

Difficulty:

95% (hard)

Question Stats:

33% (01:05) correct 67% (01:29) wrong based on 113 sessions

### HideShow timer Statistics

Carter automotive manufactures both luxury cars and economy cars. However, the number of luxury cars sold account for only 15% of the total car sales made by the company. To boost its luxury car sales, Carter has introduced a lower priced entry level car into its luxury line.

Which of the following if true points to a flaw in Carter Automotive’ s plan?

(A) People who buy Carter’s entry level luxury car would have bought one of Carter’s current luxury cars.

(B) Most of the sales of Carter’s entry level luxury car would be to people who currently purchase its economy cars.

(C) The greatest growth in luxury car segment is in mid-level luxury car market rather than in entry level

(D) The features planned for Carter’s luxury car are not likely to attract any buyers – old or new

(E) Other car manufacturers who have embarked upon introducing entry level luxury cars have found limited success with the same.
VP
Joined: 05 Mar 2015
Posts: 1004
Re: Carter automotive manufactures both luxury cars and economy cars. Howe  [#permalink]

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27 Jul 2018, 11:58
Probus wrote:
Carter automotive manufactures both luxury cars and economy cars. However, the number of luxury cars sold account for only 15% of the total car sales made by the company. To boost its luxury car sales, Carter has introduced a lower priced entry level car into its luxury line.

Which of the following if true points to a flaw in Carter Automotive’ s plan?

(A)People who buy Carter’s entry level luxury car would have bought one of Carter’s current luxury cars.
(B)Most of the sales of Carter’s entry level luxury car would be to people who currently purchase its economy cars.
(C)The greatest growth in luxury car segment is in mid-level luxury car market rather than in entry level
(D)The features planned for Carter’s luxury car are not likely to attract any buyers – old or new
(E)Other car manufacturers who have embarked upon introducing entry level luxury cars have found limited success with the same.

Assumption:-

Customers are willing to buy luxury cars because of its any feature but cannot buy because its of high price..
any option weakning the assumption is correct one

(A)People who buy Carter’s entry level luxury car would have bought one of Carter’s current luxury cars.
(B)Most of the sales of Carter’s entry level luxury car would be to people who currently purchase its economy cars.
(C)The greatest growth in luxury car segment is in mid-level luxury car market rather than in entry level
(D)The features planned for Carter’s luxury car are not likely to attract any buyers – old or new
(E)Other car manufacturers who have embarked upon introducing entry level luxury cars have found limited success with the same

Ans D
Manager
Joined: 01 Jan 2018
Posts: 121
Re: Carter automotive manufactures both luxury cars and economy cars. Howe  [#permalink]

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29 Jul 2018, 22:34
Option A says that people those who would buy entry lvl Lux car, they would have buy one from lux car series. From this statement we can infer that there will not be any change in customer base by introducing this entry lvl Lux car, and clearly weakening the argument.then why not A is the answer.?

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Re: Carter automotive manufactures both luxury cars and economy cars. Howe &nbs [#permalink] 29 Jul 2018, 22:34
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