kimmyg
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
Same passage with different question from GmatPrep:
LINK Premises:Sales were declining for many years.
Sales force was organised geographically.
Reorganization made each sales representative deal with only one type of industry (about which he knew)
Observation: After the reorganization, revenue from advertising sales increased.
Did it increase because of reorganisation?
(A) What proportion of the total revenue of the Greenvile Times is generated by advertising sales?Doesn't tell us why the revenue increased.
(B) Has the circulation of the Greenvile Times increased substantially in the last two years?If the circulation has increased in the last two years, that could be the reason for increased advertising revenue. Since the paper has become more popular, more people are advertising in it. Then the reorganisation may not be the reason for increased revenues.
Yes, the "two years" thing threw me off but think about it - 'has the circulation increased in the last two years' means 'over the last two years, has the circulation increased'. So it asks if in the relatively recent times, is the circulation increasing?
If yes, it could be the reason for increased advertising in the paper.
If no, then it is more likely that reorganisation is the reason. No does not establish that reorganisation is the reason but makes it more likely.
This question rules out another reason and hence adds value to the conversation.
(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?Irrelevant. We need to know about the "increase" - where it came from and how.
(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?Not relevant. If any clients have standing orders, that will bring in consistent revenue month after month so revenues have a fixed component. If no clients have standing orders, revenue will just freely fluctuate and will be completely variable. In any case, it doesn't help us figure out why revenue increased.
(E) Among the advertisers in the Greenvile Times are there more types of retail business or more types of industrial business?It doesn't matter. If there are more retail, it doesn't say why the revenue increased. If there are more industrial, it again doesn't say why the revenue increased.
Answer (B)Useful to evaluate video:
https://youtu.be/1JtHjH1lWZc