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# Donut Chain, wishing to increase the profitability of its new store

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Re: Donut Chain, wishing to increase the profitability of its new store [#permalink]
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This is a Strengthen the Argument question. The DC is opening a new store and will place an ad in the newspaper. The add will be in the form of a coupon that can be exchanged for free treats. Cool! The DC says that even though we have to spend some money on the ad and coupons (i.e. DC will have some costs), the revenues will be very great, exceeding the costs.

What would strengthen the above reasoning? Well, we need to find some facts that show that people will visit a new store that DC is about to open.

Quote:
(A Donut Chain has a loyal following in much of the country.

The key part here is "much of the country". What if the store will be opened in the location that is not in "much of the country"? Then the plan will fail. If you have difficulty understanding, replace country with European Union. So, there are many countries in EU, but if people in Belgium do not like donuts, and DC is planning to open the store in Belgium, the plan will fail miserably.

Quote:
(B) Donut Chain has found that the vast majority of new visitors to its stores become regular customers.

Aha! If vast majority of new visitors come back, they will spend more money and potentially become regular customers. Note that vast majority means many. If there is 100 visitors, many would be a number that is more than 5 to 15. Let's say 50 or 80 customers will come back. This is great!

Quote:
(C) One donut at Donut Chain costs less than a cup of coffee.

Cool. So, how does that affect the money that DC will make?

Quote:
(D) Most of the copies of the coupon in the local newspaper will not be redeemed for free donuts.

If anything, this option Weakens the argument. The ad campaign will not thrive & people will not use coupons. People do not want / like donuts

Quote:
(E) Donut Chain's stores are generally very profitable.

Great. Note, DCs stores are "generally" very profitable. But this new store might not be. This is not a strengthener.
Re: Donut Chain, wishing to increase the profitability of its new store [#permalink]
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