NEW HERE? LEARN MORE
closeclose
Last visit was: 02 May 2024, 07:42 It is currently 02 May 2024, 07:42
Decision Tracker
My Rewards
New posts
New comers' posts

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

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

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
Sajjad1994
GRE Forum Moderator
Joined: 02 Nov 2016
Posts: 13982
Own Kudos [?]: 33163 [4]
Given Kudos: 5783
GPA: 3.62
Send PM
CAT Tests Forum Quiz Mode
Eatco, a restaurant equipment supply firm, has decided to pay all of i [#permalink] New post   18 Sep 2017, 13:01
4
Bookmarks
Expert Reply
00:00
A
B
C
D
E

Difficulty:

55% (hard)

Question Stats:

62% (01:46) correct 38% (01:49) wrong based on 258 sessions
Hide Show timer Statistics
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.
ShowHide Answer
Official Answer
E
User avatar
P
AdityaHongunti
Director
Director
Joined: 20 Sep 2016
Posts: 559
Own Kudos [?]: 934 [2]
Given Kudos: 632
Location: India
Concentration: Strategy, Operations
Schools: Boston U '22 (S) Smeal "22 (S) Krannert '22 (I) Katz '22 (I) UC Davis '22 (S)
GPA: 3.6
WE:Operations (Consumer Products)
Send PM
GMAT ToolKit User
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i [#permalink] New post   17 May 2018, 05:45
1
Kudos
1
Bookmarks
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.
User avatar
S
olito
Intern
Intern
Joined: 26 Dec 2017
Posts: 28
Own Kudos [?]: 71 [0]
Given Kudos: 22
Location: France
Schools: LBS MiM '20 (A)
GMAT 1: 700 Q50 V34
Send PM
Reviews Badge
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i [#permalink] New post   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 !
avatar
B
Aadhitthyaa
Intern
Intern
Joined: 24 Feb 2018
Posts: 26
Own Kudos [?]: 16 [0]
Given Kudos: 38
Send PM
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i [#permalink] New post   18 May 2018, 10:26
Why is D wrong ?
Can someone explain please ?

Posted from my mobile device
User avatar
B
abhineetmanu
Intern
Intern
Joined: 25 Oct 2015
Posts: 20
Own Kudos [?]: 6 [0]
Given Kudos: 157
GMAT Focus 1:
685 Q90 V82 DI80
Send PM
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i [#permalink] New post   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
User avatar
L
rohit8865
Director
Director
Joined: 05 Mar 2015
Posts: 850
Own Kudos [?]: 866 [0]
Given Kudos: 45
Send PM
Reviews Badge
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i [#permalink] New post   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
GMAT Club Bot
gmatclubot
Re: Eatco, a restaurant equipment supply firm, has decided to pay all of i [#permalink]
18 May 2018, 12:23
Moderators:
GMATNinja
GMAT Club Verbal Expert
6923 posts
GMATNinjaTwo
GMAT Club Verbal Expert
238 posts
mysterymanrog
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions