CR: Automobile dealer

Question

https://img401.imageshack.us/img401/43/automobiledealergv5.jpg

pmenon · Answer

Is it D ?

rpmodi · Answer

I also go with D , since it is giving an alternate reason why revenue might have increased .

FN · Answer

D is the only one that makes sense..

i mean..we have to weaken his CLAIM..that his tact is working..maybe he increased profit because other dealership got shut down...

greenoak · Answer

I think it is E.

Reasoning:

We need to weaken the claim: ‘revenue has almost doubled => this tactic alone is enough to increase profits’.

We know that profit is a function of cost as well as of revenue. So, the owner’s reasoning will be flawed if smth bad happens with costs. Now, look at the answer choices. E gives us just what we need: 
‘Cost has  more than  doubled’, while ‘revenue has  almost  doubled’ => increase in revenue does not compensate the increase in costs.

rpmodi · Answer

I also thought initially that E is the answer but reading the statement again if automobile dealer is claiming "that profit was increased" , and if we doubt that statment we are almost saying that he lied ! rather attacking the reasoning behing his conclusion is a better approach and so I picked D . What do you say?

greenoak · Answer

To rpmodi:
But the owner doesn't say that profits really increased!
He says that ‘overall revenue’ increased and he suggests that the measure will ‘increase profit.’ There’s no mention in the argument that it is the  true fact  that the  profit  has indeed increased.

goalsnr · Answer

The owner claims the tatic was the reason for increased profits.
Any other statement which gives a reason why the profits increased will weaken the owners claim.
D.

greenoak · Answer

To goalsnr: Now I see your point and the reason why D may be the answer… If so, poor me, because I would have certainly chosen E on the G-day

BTW, what is the source of the question?

lexis · Answer

If E is true, it may only affect to the increase profit. However, author does not mention how severely the cost increase will affect to profit increase. 
D (OA) is best answer, by saying that there are another factor contribute to profit increase.

I picked it from Princeton Review.

goalsnr · Answer

Greenoak, you are good at CRs. DOnt worry you'll do well.

vksunder · Answer

Could one you tell me what is wrong with C.

I went with D, but I think C is a strong contender because profits could have been generated from the sale of other vehicles (not truck, but cars??)

vksunder · Answer

Could one you tell me what is wrong with C.

I went with D, but I think C is a strong contender because profits could have been generated from the sale of other vehicles (not truck, but cars??)

mbawaters · Answer

We have to counter the claim that dealership's profit increased because of its new strategy of increasing the price of trucks.

D does just that.

mbawaters · Answer

C is saying that overall profit has increased in the dealership but that is what statement is suggesting as well. We are provided nothing new in C that provide an alternative .

CR: Automobile dealer

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