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09 Jan 2022, 17:01
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75% (02:11) correct
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Clear-space produces high-quality vacuum cleaners. For years, they have primarily served manufacturers of commercial cleaning equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Clear-space could expand into vacuum cleaners for upright drive-belt suction technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Clear-space’s profits.
Which of the following would be the most useful to establish in evaluating the recommendation of the consultant?
A. Whether other markets, such as flour mills and power stations, would offer greater opportunities for potential profits.
B. Whether the number of upright drive-belt motors at any single workplace is greater than the number of pieces of equipment requiring cleaners on a single firm.
C. How the ambient space quality in an upright drive-belt suction technology compares to the typical space quality in a commercial cleaning set-up.
D. Whether the competition in the upright drive-belt suction technology sector would allow for profits similar to what those in the commercial cleaning equipment sector had been
E. Whether countries with expanding commercial sectors would use cleaning equipment similar to cleaners currently served by Clear-space.
GMAT VERBAL Daily Challenge RC/CR/SC (2022) Project
Which of the following would be the most useful to establish in evaluating the recommendation of the consultant?
A. Whether other markets, such as flour mills and power stations, would offer greater opportunities for potential profits.
B. Whether the number of upright drive-belt motors at any single workplace is greater than the number of pieces of equipment requiring cleaners on a single firm.
C. How the ambient space quality in an upright drive-belt suction technology compares to the typical space quality in a commercial cleaning set-up.
D. Whether the competition in the upright drive-belt suction technology sector would allow for profits similar to what those in the commercial cleaning equipment sector had been
E. Whether countries with expanding commercial sectors would use cleaning equipment similar to cleaners currently served by Clear-space.
GMAT VERBAL Daily Challenge RC/CR/SC (2022) Project
09 Jan 2022, 18:21
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A. Whether other markets, such as flour mills and power stations, would offer greater opportunities for potential profits.
Comparison is between two industries(markets) manufacturers of a commercial cleaning industry and upright drive-belt suction technology. Information provided is irrelevant.
B. Whether the number of upright drive-belt motors at any single workplace is greater than the number of pieces of equipment requiring cleaners on a single firm.
I wasn't able to comprehend this option, this option is weird. but lets try. - What if even though the number of drive belt motors are higher than the pieces of equipment requiring cleaners on a single firm but all those motors require only one vacuum cleaner to clean. So not a profitable deal.
C. How the ambient space quality in an upright drive-belt suction technology compares to the typical space quality in a commercial cleaning set-up.
We are looking to compare the profit revenues from the two markets, not the quality.
D. Whether the competition in the upright drive-belt suction technology sector would allow for profits similar to what those in the commercial cleaning equipment sector had been
Yes, this will certainly help to evaluate the statement of the consultant, because if the competition is tight then the promise made by the consultant won't hold.
E. Whether countries with expanding commercial sectors would use cleaning equipment similar to cleaners currently served by Clear-space.
How does it matter if countries with expanding commercial sectors would use cleaning equipment similar to cleaners currently served by Clear-space, its not saying they are going to buy cleaners from Clear-space. If that was the case then the comparison would have been appropriate to evaluate.
10 Jan 2022, 14:22
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Clear-space produces high-quality vacuum cleaners. For years, they have primarily served manufacturers of commercial cleaning equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Clear-space could expand into vacuum cleaners for upright drive-belt suction technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Clear-space’s profits.
Which of the following would be the most useful to establish in evaluating the recommendation of the consultant?
Solution:
A. Whether other markets, such as flour mills and power stations, would offer greater opportunities for potential profits.: Irrelevant. We have to evaluate the current plan, not other potential plans.
B. Whether the number of upright drive-belt motors at any single workplace is greater than the number of pieces of equipment requiring cleaners on a single firm.: Not needed. We don't the relative cost or profit margins on either equipment mentioned. So, just by number, we cannot understand the profits.
C. How the ambient space quality in an upright drive-belt suction technology compares to the typical space quality in a commercial cleaning set-up.: Irrelevant. We have to evaluate profits from the new venture. The ambient space quality is irrelevant.
D. Whether the competition in the upright drive-belt suction technology sector would allow for profits similar to what those in the commercial cleaning equipment sector had been: Now, here's something that can hinder profits. An understanding of competition helps us.
E. Whether countries with expanding commercial sectors would use cleaning equipment similar to cleaners currently served by Clear-space.: We don't need to understand the future marketability of the current product of Clear-space. We are interested in knowing whether Clear-space could expand into vacuum cleaners for upright drive-belt suction technology.
Which of the following would be the most useful to establish in evaluating the recommendation of the consultant?
Solution:
A. Whether other markets, such as flour mills and power stations, would offer greater opportunities for potential profits.: Irrelevant. We have to evaluate the current plan, not other potential plans.
B. Whether the number of upright drive-belt motors at any single workplace is greater than the number of pieces of equipment requiring cleaners on a single firm.: Not needed. We don't the relative cost or profit margins on either equipment mentioned. So, just by number, we cannot understand the profits.
C. How the ambient space quality in an upright drive-belt suction technology compares to the typical space quality in a commercial cleaning set-up.: Irrelevant. We have to evaluate profits from the new venture. The ambient space quality is irrelevant.
D. Whether the competition in the upright drive-belt suction technology sector would allow for profits similar to what those in the commercial cleaning equipment sector had been: Now, here's something that can hinder profits. An understanding of competition helps us.
E. Whether countries with expanding commercial sectors would use cleaning equipment similar to cleaners currently served by Clear-space.: We don't need to understand the future marketability of the current product of Clear-space. We are interested in knowing whether Clear-space could expand into vacuum cleaners for upright drive-belt suction technology.
