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For each of the past two years, major department stores have

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Re: For each of the past two years, major department stores have [#permalink]

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New post 23 Oct 2016, 12:42
megha_2709 wrote:
Hi pqhai
Below is my understanding of the question:

As per the question surprising result is sales of Zachary men clothing has gone up but sales of other men's clothing has gone down and we need to solve this paradox.

I chose E as answer but I know now its incorrect since it says all of the Zachary clothing is sold at discount that doesn't explains why men's clothing has gone up and sales of all other clothing has declined. However I still cant understand why C is correct as it says "C) Zachary, Inc. is renowned for the quality of its fabrics, and sells large quantities of fabric to other manufacturers of men's clothing." Zachary is renowned for its quality of fabrics that includes all the fabric (men, women both), it sells large amnt to other manufacturers of men's clothing which explains why it men's clothing sales has gone up. However it still doesn't explain why other manufacturer's sales has gone down since they are also using high quality Zachary fabric. It also doesn't explain why sales of other Zachary clothing has gone down since its mentioned in the ans choice that Zachary is known for high quality fabric not just for men's clothing , then why Zachary's other clothing sales has declined.

I hope my query is clear, sorry for long post. Please help as I fail to understand this question. As per my understanding C only answers one part of the paradox i.e. sales of men clothing has gone up because large amt is sold to manufacturers, it doesn't explains despite having high quality fabric why sales of other Zachary clothing has gone down or when other manufacturers are using Zachary high quality fabric still why their sales have declined.

Regards
Meghna


Hi megha_2709 ,
Your understanding of the paradox is incorrect .
Zachary Inc revenues have increased by 50 % in past 2 years whereas most other brands have had depressed sales during the same period .
ZAC , which is the parent of Zachary Inc . , has reported a slight decline in overall sales in past 2 years .

Paradox-Even though Zachary Inc , a subsidiary of Z.A.C , has performed well , the parent company has experienced a slowdown in sales during the same period .


C) Z.A.C. is renowned for the quality of its fabrics, and sells large quantities of fabric to a variety of manufacturers of men's clothing.
Z.A.C is a supplier of fabrics to other clothing brands . We know that most of the clothing brands have had depressed sales during last 2 years . Because of slowdown in demand , these brands purchased lesser amount fabric from ZAC . Hence , the total revenue of ZAC declined .

Hope this helps!! :)
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Re: For each of the past two years, major department stores have [#permalink]

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New post 15 Nov 2016, 10:54
Can we have an expert taking a call on this question. Please if anyone can explain why the correct answer is correct. Mr. mikemcgarry please if you can take out some time and help with this question.

Thanks!

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Re: For each of the past two years, major department stores have [#permalink]

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New post 09 Mar 2017, 11:03
janxavier wrote:
Quote:
D) Zachary, Inc. formerly manufactured leather accessories and women's clothing in addition to men's clothing, but, for the past three years, the company has produced only men's clothing. - WRONG - Out of scope.


Can someone please tell me why not D or why s it out of scope? They have been selling other things as well like women's clothing. So though there was an increase in sales of men's clothing their overall sales saw a decline coz they were probably not able to sell other clothing. Could nt that be considered ?


D) Zachary, Inc. formerly manufactured leather accessories and women's clothing in addition to men's clothing, but, for the past three years, the company has produced only men's clothing.
For the past 3 years the company produced only men's clothing.
Questions asks us about previous 2 years.

Therefore information about leather accessories and women's clothing is not relevant to the steem of question

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Re: For each of the past two years, major department stores have [#permalink]

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New post 11 Mar 2017, 21:19
quite easy straight C
as if the rivals company are not purchasing the fabrics produced by z company then overall sales will decline spontaneously

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New post 01 Apr 2017, 03:33
I got a different option E for this question:
E). In the last two years, Z.A.C., in addition to maintaining its prior business ventures, expanded into two new markets, neither of which has been particularly profitable thus far.

Can you please tell why this option is wrong

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Re: For each of the past two years, major department stores have [#permalink]

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New post 18 May 2017, 09:29
still not totally convinced of the explanations people on this thread have given.

i actually saw this question in a MPREP CAT and "e" for me was: "In the last two years, Z.A.C., in addition to maintaining its prior business ventures, expanded into two new markets, neither of which has been particularly profitable thus far." <-- this is the answer i chose.
- this A/C addresses the discrepancy: ZAC experienced a slight decline in sales b/c its going into new markets that aren't doing well, whereas it is maintaining its current operations (Zachary). the passage addresses what is happening w/ Zachary (it is doing well).

- unsure how "C" is correct. if zachary is known for the quality of its fabrics and it is selling to other men's clothing manufacturers, then wouldn't these manufacturers have access to high quality products and sell more? further, how is zachary experiencing an increase in sales while selling the same fabrics that other companies can't seem to sell (as noted by a decrease in sales?)

just doesn't make sense to me

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Re: For each of the past two years, major department stores have [#permalink]

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New post 16 Sep 2017, 22:36
thinktank wrote:
For each of the past two years, major department stores have reported a nearly 50% increase in their sales of men's clothing manufactured by Zachary, Inc., a result that is all the more surprising because the sales of most other brands of men's clothing have been depressed over the same period. Nevertheless, even Zachary, Inc. does not appear to have emerged unscathed from the overall trend: despite the aforementioned increase, Zachary, Inc. has reported a slight decline in overall sales in each of the past two years.

Which of the following, if true, most helps to explain the surprising result above?

(A) The sales of clothing at Zachary, Inc.'s boutique stores, which, unlike department stores, are owned and operated by the company itself, have held steady over the last two years.

(B) Two years ago, Zachary, Inc. began an ambitious new advertising campaign; in each of the last two years, the company's advertising department has overspent its planned budget by almost half.

(C) Zachary, Inc. is renowned for the quality of its fabrics, and sells large quantities of fabric to other manufacturers of men's clothing.

(D) Zachary, Inc. formerly manufactured leather accessories and women's clothing in addition to men's clothing, but, for the past three years, the company has produced only men's clothing.

(E) In the last two years, the percentage of Zachary, Inc.'s clothing sold by department stores at discounted prices has been unusually high, a result that analysts have blamed on the sluggish economy.


Official Explanation


(1) Identify the Question

The language explain the apparent contradiction indicates that this is an Explain the Discrepancy question.

(2) Deconstruct the Passage

According to the passage, sales of Zachary Inc. men’s clothing at department stores are up significantly over the last two years. Nevertheless, despite that increase, overall sales numbers have shrunk over the same period. The passage also mentions that other brands of men's clothing have experienced a decline in sales as well.

(3) State the Goal

The apparent contradiction is the decrease in Zachary's overall sales despite the jump in the sales of men's clothing at department stores. Since the department-store sales of Zachary’s men’s clothing have definitely increased, the only possible explanation for this result would be a decrease in some other aspect of the company's sales.

(4) Work from Wrong to Right

(A) According to this statement, the boutique stores' sales remained constant. To help explain the unexpected drop in the overall sales, the boutique stores' sales would need to have decreased over the two-year period.

(B) The current passage is focused only on sales, not on the overall profitability of the company, so advertising expenses are irrelevant.

(C) CORRECT. The other men's clothing manufacturers did experience a decline in sales. If those companies did not buy as much fabric from Zachary's as they had in prior years, then Zachary's overall sales could have declined even as their own clothing line continued to sell well.

(D) A decline in sales for other product lines could be relevant, as long as those declines occurred within the past two years, since the passage is concerned only with Zachary's sales trends over the past two years. Changes that occurred three or more years earlier are irrelevant.

(E) Participation in two new business ventures that have not proved to be profitable as of yet does not explain Zachary's decrease in sales. The company has to have lost sales somewhere. New business ventures that aren't performing well yet are perhaps not adding many new sales, but that does not impact prior sales from existing divisions. (Further, note that this choice says only that the new ventures are not very profitable yet—a new venture could have a lot of sales even though it is not yet able to turn a profit.)
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Re: For each of the past two years, major department stores have   [#permalink] 16 Sep 2017, 22:36

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