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# FastMart, a convenience store chain, is planning to add pancake syrup

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FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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01 Jan 2010, 03:20
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Question Stats:

85% (01:37) correct 15% (01:53) wrong based on 585 sessions

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FastMart, a convenience store chain, is planning to add pancake syrup to the items it sells. FastMart stores do not have shelf space to stock more than one variety of syrup. Surveys of FastMart customers indicate that one-fourth of them prefer low-calorie syrup, while three-fourths prefer regular syrup. Since FastMart’s highest priority is to maximize sales, the obvious strategy for it is to stock regular syrup.

Which of the following, if true, most seriously weakens the argument?

(A) People buying pancake syrup at convenience stores, unlike those buying it at supermarkets, generally buy it only a few times.

(B) People who prefer low-calorie syrup generally use about the same amount of syrup on their pancakes as those who prefer regular syrup.

(C) Regular syrup does not sell for a higher price per unit than low-calorie syrup.

(D) In general, customers who prefer regular syrup will buy low-calorie syrup if regular is unavailable, but those who prefer low-calorie will not buy regular syrup.

(E) Sales of syrup are not expected to account for a large proportion of total dollar sales at the average FastMart store.

Question Code : VCR005666
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Joined: 22 Dec 2009
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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01 Jan 2010, 21:47
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D is correct. The argument states "customers indicate that one-fourth of them prefer low-calorie syrup, while three-fourths prefer regular syrup." FastMart's strategy is to stock regular syrup. With D, those who prefer low-calorie will not buy regular syrup, but those customers who prefer regular syrup will buy low-calorie syrup if regular is unavailable. If FastMart stocks regular syrup, they will lose the one-fourth of the customers who prefer low-calorie syrup. According to this, FastMart should stock low-calorie syrup, therefore keeping their entire customer base.
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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08 Aug 2011, 02:13
I still have trouble understanding this question, obviously I understand d can weaken the argument, but what about A,if "People generally buy it only a few times", the store can't achieve its sales goal...
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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08 Aug 2011, 03:06
D it is.

The problem scope is Syrups and their sales. Even sale of few bottles would contribute to the profit.

Crick
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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08 Aug 2011, 10:15
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sophin wrote:
I still have trouble understanding this question, obviously I understand d can weaken the argument, but what about A,if "People generally buy it only a few times", the store can't achieve its sales goal...

A) doesn't weaken the argument because the statement doesn't talk about buying regular vs low cal syrup. The statement mentions that people buy syrup a few times, but doesn't mention the type of syrup (regular or low cal) that people prefer / buy. Thus, it doesn't provide any clues about which type of syrup the convenience store should stock to maximize profitability.
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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02 Jul 2012, 10:50
Straight D.

The best way to maximize sales, given the two options, is to stock with low cal sizzurp, since both high and low cal loyalists will buy it. Stocking with regular sizzurp would be a mistake since it will attract only regular lovers and will be rejected by low cal fans.

Cheers,
Der alte Fritz.
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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02 Jul 2012, 11:32
if people can buy low calorie syrup and are not reluctant enough to deny the purchase then it means that low calorie syrup will be sold at any cost(whether it's asked in the first go or not by people )
+1 for (D)
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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30 Jul 2014, 04:37
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It's D.

What we need to prove here is that stocking regular syrup is not a better option than stocking low-calorie syrup.

Imagine that FastMart stores regular syrup: according to D, 75% of its customers will buy the syrup.
On the other hand, provided that FastMart stores low-calorie syrup: 25% of low-calorie lovers will buy it + those 75% who prefer regular syrup but are willing to switch provided that regular is not available. In this way, by storing low-calorie syrup, FastMart attracts 100% of syrup lovers.

I could easily discard A, B and E but I considered C a contender. I made 2 scenarios that helped me eliminate C:
the price of regular can be either equal or lower than that of low-calorie syrup.
Scenario 1: prices of regular and low-cal are equal --> it is better to sell regular because more people will buy it (75%)
Scenario 2: if the price of regular is lower than that of low-cal ---> FastMart will not increase sales by selling regular.

The first scenario strengthens the argument and the second scenario weakens it. Since we have no further information regarding the price, we cannot pick this statement.
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Re: FastMart, a convenience store chain, is planning to add pancake syrup  [#permalink]

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12 Aug 2018, 14:30
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Re: FastMart, a convenience store chain, is planning to add pancake syrup   [#permalink] 12 Aug 2018, 14:30
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