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Following several years of declining advertising sales, the

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 14 Aug 2016, 05:56
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Revenue of any company would increase only if its sales improve.
Only if it has more sales, will it get more advertisement orders.
More sales + more advertisement = more revenue.
If the times sells lesser, then it would have a cut down in its advertisement orders and creating more loss.
So answer "B" is correct.

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 24 Oct 2016, 08:23
Can anyone help me out to understand the answer choice B?

Option B says - knowing whether circulation increased or not will help to evaluate the conclusion.
Official guide says, increase in circulation is an alternative reason for increase in the revenue. This is debatable..
My concern is circulation could have increased because of reorganization. Alternatively, it could have increased because of other reasons also. We dont know.

The argument doesn't provide any information linking circulation of the GreenVille Times to reorganization. To arrive at the answer choice B, we will have to assume that the circulation is not linked to re-organization. This is strange.. Why are we assuming this?
I really cant understand.. If increase in circulation is directly the impact of the reorganization, then what?

Can anyone help please? What am I missing here?

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Re: Following several years of declining advertising sales, the [#permalink]

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New post 16 Apr 2017, 23:31
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kimmyg wrote:
Following several years of declining advertising sales, the Greenvile Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives' knowledge of clients' business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following?

(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?
(B) Has the circulation of the Greenvile Times increased substantially in the last two years?
(C) Among all types of industry and retailing that use the Greenvile Times as an advertising vehicle, which type accounts for the largest proportion of the newspaper's advertising sales?
(D) Do any clients of the sales representatives of the Greenvile Times have a standing order with the Times for a fixed amount of advertising per month?
(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?


OG2017 Diagnostic V70, P34

Advertising Sales
 
Step 1: Identify the Question

The questions ask which of the answers would be most helpful to find out, so this is an Evaluate the Argument question.

Step 2: Deconstruct the Argument

Reorg ad department
Old – geo
New – industry
© Sales up - due to reorg?

The conclusion that you are supposed to evaluate is stated in the question stem: whether the improvement in advertising sales can properly be attributed to the reorganization.

Step 3: Pause and State the Goal

On Evaluate questions, the correct answer is information that is important in determining whether the conclusion is believable. In this case, what would make it more or less likely that the reorganization actually caused the change in ad sales? Are there any other factors that might have generated this result?

Step 4: Work from Wrong to Right

(A) The amount of revenue from advertising sales relative to other revenue sources does not impact whether the reorganization is the cause of the increase in advertising sales.
(B) CORRECT. The circulation of the newspaper is important to advertising revenues; advertisers will pay more if circulation is higher because the ads reach more people. Increased circulation would WEAKEN the conclusion because it provides an alternative explanation for increased ad revenues. If circulation has NOT increased, the conclusion would be SUPPORTED because it is more likely the reorganization caused the increase.
(C) The exact types of businesses advertising and the proportions of advertising revenues that these businesses represent do not directly speak to whether the reorganization caused an increase in revenues.
(D) The conclusion of the argument regards whether increased revenues can be attributed to the reorganization; the exact structure of contracts for particular clients is not directly related. If anything, contracts for a fixed amount of advertising do not fall into the increased sales category.
(E) The types of businesses, specifically the proportion of retail versus industrial businesses, do not directly influence whether the reorganization was the cause of increased revenues.
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Re: Following several years of declining advertising sales, the [#permalink]

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New post 13 Jul 2017, 18:57
Generalize:
past yrs - ad sales low
after reorg - ad sales high

Did reorganizing really cause the rise in ad sales? By generalizing we can remove all the fluff. Then we can ask can anything else increase sales? The most obvious answer is circulation. If circulation increased then reorg had little affect on the sales, if not, it was the reason.

Answer is B
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Re: Following several years of declining advertising sales, the [#permalink]

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New post 17 Aug 2017, 06:53
Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force. Before
reorganization, the sales force was organized geographically, with some sales representatives concentrating on city- center
businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales
representatives’ knowledge of clients’ businesses by having each sales representative deal with only one type of industry or
of retailing. After the reorganization, revenue from advertising sales increased. In assessing whether the improvement in
advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the
following?


(A) What proportion of the total revenue of the Greenville Times is generated by advertising sales?
(B) Has the circulation of the Greenville Times increased substantially in the last two years?
(C) Among all the types of industry and retailing that use the Greenville Times as an advertising vehicle, which type accounts for
the largest proportion of the newspaper’s advertising sales?
(D) Do any clients of the sales representatives of the Greenville Times have a standing order with the Times for a fixed amount of
advertising per month?
(E) Among the advertisers in the Greenville Times, are there more types of retail business or more types of industrial business?
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Last edited by broall on 17 Aug 2017, 08:24, edited 1 time in total.
Merged topic. Please search before posting question.

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Re: Following several years of declining advertising sales, the   [#permalink] 17 Aug 2017, 06:53

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