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# Don s, a chain of supermarkets, has entered into an

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Manager
Joined: 11 Jul 2009
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Don s, a chain of supermarkets, has entered into an [#permalink]

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02 Nov 2009, 10:48
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Question Stats:

59% (01:34) correct 41% (02:52) wrong based on 99 sessions

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Don’s, a chain of supermarkets, has entered into an agreement in which Rose Computers will sell Don’s an unlimited number of its least expensive PC’s at one-fourth the regular wholesale price. In return, Don’s has agreed to purchase all of its scanners and other electronic information-processing equipment from Rose or from Omicron, Rose Computers’ parent company, for the next ten years. Don’s will offer a Rose PC free to any school that turns in Don’s register receipts totaling \$100,000 within the next six months. The vice-president in charge of advertising for Don’s expects that the computer giveaway will obviate the need for a massive new advertising campaign for the next six months and that Don’s can make up the expenditures for the PC’s by writing them off its income taxes as charitable donations.
The plans formulated by Don’s assume each of the following EXCEPT:
(A) The prices that Rose or Omicron charges Don’s for information-processing equipment over the next ten years will be lower than those charged by other companies.
(B) The tax laws will not be changed to exclude or lessen the value of charitable donations as tax write-offs.
(C) Schools will be sufficiently attracted by Don’s computer giveaway offer that teachers will urge students to shop at Don’s.
(D) Rose will be able to supply Don’s with a sufficient number of PC’s to meet the demand generated by schools that collect Don’s receipts totaling \$100,000.
(E) The effect of the computer giveaway offer on Don’s business will be comparable to that of a major advertising campaign.

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Re: Don’s, a chain of supermarkets, agreement with Rose computer [#permalink]

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03 Nov 2009, 04:17
A

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Manager
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Re: Don’s, a chain of supermarkets, agreement with Rose computer [#permalink]

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03 Nov 2009, 12:47
raven678 wrote:
Don’s, a chain of supermarkets, has entered into an agreement in which Rose Computers will sell Don’s an unlimited number of its least expensive PC’s at one-fourth the regular wholesale price. In return, Don’s has agreed to purchase all of its scanners and other electronic information-processing equipment from Rose or from Omicron, Rose Computers’ parent company, for the next ten years. Don’s will offer a Rose PC free to any school that turns in Don’s register receipts totaling \$100,000 within the next six months. The vice-president in charge of advertising for Don’s expects that the computer giveaway will obviate the need for a massive new advertising campaign for the next six months and that Don’s can make up the expenditures for the PC’s by writing them off its income taxes as charitable donations.
The plans formulated by Don’s assume each of the following EXCEPT:
(A) The prices that Rose or Omicron charges Don’s for information-processing equipment over the next ten years will be lower than those charged by other companies.
(B) The tax laws will not be changed to exclude or lessen the value of charitable donations as tax write-offs.
(C) Schools will be sufficiently attracted by Don’s computer giveaway offer that teachers will urge students to shop at Don’s.
(D) Rose will be able to supply Don’s with a sufficient number of PC’s to meet the demand generated by schools that collect Don’s receipts totaling \$100,000.
(E) The effect of the computer giveaway offer on Don’s business will be comparable to that of a major advertising campaign.

"A"

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Re: Don’s, a chain of supermarkets, agreement with Rose computer [#permalink]

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03 Nov 2009, 14:41
OA and explanation?

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Re: Don’s, a chain of supermarkets, agreement with Rose computer [#permalink]

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03 Nov 2009, 21:27
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Expert's post
A is the answer. Don's is agreeing to buy scanners from Rose/Omicron as reciprocation; it is probable, in fact, that other companies WILL offer a better deal at some point (otherwise Don's promise to buy something they'd buy anyway is worthless!).

B must be true because their plan hinges on charitable donations; if they no longer can do so, their computers become way more expensive. C is necessary for their plan because they plan to replace an advertisement campaign, so they must be attracting customers somehow for the plan to make sense. D has to be true because Don's needs enough machines to give away or they will have to discontinue the program. E is more or less stated in Don's conclusion; they think this scheme will obviate advertising, so it must provide much of the same benefits.
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Re: Don’s, a chain of supermarkets, agreement with Rose computer [#permalink]

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04 Nov 2009, 14:40
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KapTeacherEli wrote:
A is the answer. Don's is agreeing to buy scanners from Rose/Omicron as reciprocation; it is probable, in fact, that other companies WILL offer a better deal at some point (otherwise Don's promise to buy something they'd buy anyway is worthless!).

B must be true because their plan hinges on charitable donations; if they no longer can do so, their computers become way more expensive. C is necessary for their plan because they plan to replace an advertisement campaign, so they must be attracting customers somehow for the plan to make sense. D has to be true because Don's needs enough machines to give away or they will have to discontinue the program. E is more or less stated in Don's conclusion; they think this scheme will obviate advertising, so it must provide much of the same benefits.

The OA is A. This was tough. Thanks

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Re: Don s, a chain of supermarkets, has entered into an [#permalink]

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06 Mar 2012, 16:50
In the Assumption Except questions is it better to rule out the answers to come to the right answer.

Like in this question.

Thanks

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Re: Don s, a chain of supermarkets, has entered into an [#permalink]

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06 Mar 2012, 19:50
(A) The prices that Rose or Omicron charges Don’s for information-processing equipment over the next ten years will be lower than those charged by other companies.

Choice A is the answer. This choice is not in scope.
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Re: Don s, a chain of supermarkets, has entered into an [#permalink]

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27 Aug 2012, 06:18
Exactly. The premise doesn't talks about information processing equipment and hence this option is easy to spot on.
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Re: Don’s, a chain of supermarkets, agreement with Rose computer [#permalink]

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23 Nov 2012, 04:42
Can you please provide a detailed explanation ruling out the answering choices and how you approached the problem.
I am not very clear with the explanations so far.

Thanks

raven678 wrote:
KapTeacherEli wrote:
A is the answer. Don's is agreeing to buy scanners from Rose/Omicron as reciprocation; it is probable, in fact, that other companies WILL offer a better deal at some point (otherwise Don's promise to buy something they'd buy anyway is worthless!).

B must be true because their plan hinges on charitable donations; if they no longer can do so, their computers become way more expensive. C is necessary for their plan because they plan to replace an advertisement campaign, so they must be attracting customers somehow for the plan to make sense. D has to be true because Don's needs enough machines to give away or they will have to discontinue the program. E is more or less stated in Don's conclusion; they think this scheme will obviate advertising, so it must provide much of the same benefits.

The OA is A. This was tough. Thanks

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Re: Don s, a chain of supermarkets, has entered into an [#permalink]

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25 Nov 2012, 20:34
It took me 2 min 30 sec but choices were so easy to eliminate that i chose A and is the right answer.

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Re: Don s, a chain of supermarkets, has entered into an [#permalink]

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19 Jan 2015, 09:08
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Don s, a chain of supermarkets, has entered into an [#permalink]

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03 Sep 2016, 02:45
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Don s, a chain of supermarkets, has entered into an   [#permalink] 03 Sep 2016, 02:45
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