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# Eatco, a restaurant equipment supply firm, has decided to pay all of i

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SVP
Status: Preparing for the GMAT
Joined: 02 Nov 2016
Posts: 1673
Location: Pakistan
GPA: 3.39
Eatco, a restaurant equipment supply firm, has decided to pay all of i  [#permalink]

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18 Sep 2017, 13:01
2
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Difficulty:

55% (hard)

Question Stats:

58% (01:17) correct 42% (01:16) wrong based on 177 sessions

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Eatco, a restaurant equipment supply firm, has decided to pay all of its salespeople on a commission structure rather than the salary structure previously used at the company. Eatco executives have assured the sales staff that, with the busy holiday season coming up, the commission structure will either maintain or increase the salespeople’s current pay.
Which of the following could cause the assurances given by Eatco executives to the sales staff to be untrue?

A A competing restaurant equipment supply firm also switches its salespeople over to a commission structure.

B Some customers requesting items that are out of stock and have to be ordered.

C The old salary structure did not include health insurance, but the commission structure provides the salespeople with the option to subscribe to a cafeteria-style insurance plan.

D Several new restaurants are opening in the area.

E The Eatco executives decided to hire several new salespeople on the commission structure, in order to make sure that all customers are getting the best possible service.

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Manager
Joined: 20 Sep 2016
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Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i  [#permalink]

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17 May 2018, 05:45
Basically a WEAKEN question.
NOTE- Weaken the assurance clause

A and E are contenders.
A implies that because of competition the commission structure may not result as is expected from it. ie. as the employees too would concentrate on the same group of customers( probably ).

E attacks the assurance with number stats. eg.
current employees- x
increase in employees- >x
now the conclusion states that the commission structure maintains or increase the current pay. But if the number of employees who work on COMMISSION increases the probability of current employees to secure commission decreases and hence the conclusion falls.

Question- MOST weakens. A can have varied effects or the chances of conclusion maintaining its position is somewhat half.
whereas in E the probability is extremely low.
Intern
Joined: 26 Dec 2017
Posts: 32
GMAT 1: 700 Q50 V34
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i  [#permalink]

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17 May 2018, 23:09
Question type : Weaken

Argument structure :
Premise 1 : Go from salary structure to commission structure
Premise 2 : Busy holiday season is coming
Conclusion : The commission structure will maintain or increase the salespersons' current pay

The argument makes a big assumption : The number of available customers per salesperson will not decrease.

Any answer supporting this assumption will be a trap answer, it will strengthen the argument (Here it is answer choice D)
The answer highlighting that the number of customers per sales person will decrease is going to be the right answer.

If you follow that process the answer choices are quite easy to eliminate and you will find that E is the right answer.

Essentially E is saying that it will hire more employees, which means that the ratio of customers to salespersons will decrease.

I hope it was helpful !
Intern
Joined: 24 Feb 2018
Posts: 38
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i  [#permalink]

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18 May 2018, 10:26
Why is D wrong ?
Can someone explain please ?

Posted from my mobile device
Intern
Joined: 25 Oct 2015
Posts: 14
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i  [#permalink]

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18 May 2018, 11:52
Why D is Incorrect??
If new restra are opening in the area, then the no of customers visiting the Eatco will decrease. This ultimately leads to decrease in number of customers per salesperson and thus hampering the commission
Director
Joined: 05 Mar 2015
Posts: 984
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i  [#permalink]

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18 May 2018, 12:23
Aadhitthyaa wrote:
Why is D wrong ?
Can someone explain please ?

Posted from my mobile device

Because option D states that several new restaurants are opening , there are chances most of them(new restaurants) will order supplies through the company in argument, thus making more incentive to salesperson

this is rather strengthening,

so D is incorrect
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i &nbs [#permalink] 18 May 2018, 12:23
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# Eatco, a restaurant equipment supply firm, has decided to pay all of i

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