Don's, a chain of supermarkets, has entered into an agreement in which

Question

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.

starklogan456 · Accepted Answer

I do not believe that C) is a necessary assumption.

Nowhere in the passage has it been stated that Don's plan requires schools' students to buy products from them.

If C were negated, there are still several possibilities that would lead to the plan's success: what if the teachers themselves shop a lot more, what if the school itself purchases more from Don's.

Could someone explain to me why it is necessary that 'teachers urge students' to buy from Don's?

Posted from my mobile device

KapTeacherEli · Answer

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.

aragonn · Answer

Premise : rose to don --- cheap PC on 1/4 of regular whole sale price. 
Don to rose --- purchase all of its scanners and other *
don's trying philanthropy. but actually that is fill in for advertising.

Conclusion  - This plan will save money in these two ways.

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.  --- if not, they are losing money but don'd plan will fell apart??? this is the answer. 
(B) The tax laws will not be changed to exclude or lessen the value of charitable donations as tax write-offs. --- if it did don'd plan will fell apart.
(C) Schools will be sufficiently attracted by Don’s computer giveaway offer that teachers will urge students to shop at Don’s. --- if it did don'd plan will fell apart.
(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. --- if it did don'd plan will fell apart.
(E) The effect of the computer giveaway offer on Don’s business will be comparable to that of a major advertising campaign. --- --- if it did don'd plan will fell apart.

ayushgarg32 · Answer

Honestly I didn't find this question worthy of 700 level, Please review the questions properly before posting under any specific level

nandeta · Answer

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.
The prices that rose charge would be the same as they charge the other companies, because in batter they have given their other pC at 1/4th of the price. Had they not given it has 1/4th price, then to attract a deal with Don's they would have charged them less for information - processing equipment.

(B) The tax laws will not be changed to exclude or lessen the value of charitable donations as tax write-offs.
They have assumed it as they are going to write it in their charitable donation.

(C) Schools will be sufficiently attracted by Don’s computer giveaway offer that teachers will urge students to shop at Don’s.
Assumed in the deal.

(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.
Assumed.

(E) The effect of the computer giveaway offer on Don’s business will be comparable to that of a major advertising campaign.
Assumed

Crytiocanalyst · Answer

(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.
THIS isn't explicitly stated in the argument just that they would supply and can it be compared with other companies is questiionable

(B) The tax laws will not be changed to exclude or lessen the value of charitable donations as tax write-offs.
Yes otherwise the the company will not be able to increase the profit margin

(C) Schools will be sufficiently attracted by Don’s computer giveaway offer that teachers will urge students to shop at Don’s.
Yes the campaign should generate enough intrest through school teachers enthusiasm otherwise the scucess rate can still decrease

(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.
Yes this is also prerequisite for the campaign , otherwise the image of the campaign will be damaged and scucess rate might dwindle

(E) The effect of the computer giveaway offer on Don’s business will be comparable to that of a major advertising campaign.
Yes even this is stated in the argument hence it has to be a valid point

Hence imo A

Sajal12 · Answer

Hi Experts,

Can someone please explain why D is incorrect? The passage stated that there is an unlimited supply of PC by Rose

sssanskaar · Answer

Yes you are correct. But what if Rose computers provides just half of the number of PCs to a school that totals a $100,000 in the span of first 6 months and the rest half of the number of PCs in the later six months? In this case some schools, if not many, won't be able to get the total number of PCs required in one go. And that will be a bad advertising

krndatta · Answer

ParamjitDasGMAT ,

Please evaluate my reasoning for option B? 
Option B when negated says that "Tax laws will be changed to exclude/lessen the value of ......."

So if tax laws will be changed, then what Don's plans to write off in charitable donations won't be possible. Hence, our conclusion is weakened.

Please share your two cents.

thelastskybender · Answer

I think C is not the necessary assumption.

Don's, a chain of supermarkets, has entered into an agreement in which

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Don's, a chain of supermarkets, has entered into an agreement in which

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