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15 Jul 2026, 22:33
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The CEO's argument is:
- In 2015, SunDog replaced turboprop planes with regional jets on routes over 300 miles.
- Even though the airline sold more fares, its profits were lower.
- Therefore, the CEO concludes that the higher operating costs of the regional jets caused the decline in profits.
(A) says other airlines using regional jets had higher profits. This suggests regional jets can be profitable, but those airlines may have different routes, pricing, or costs. It doesn't directly explain SunDog's lower profits.
(B) says passengers rated the new jets higher for comfort and reliability. This actually makes it less likely that the new jets hurt the business and doesn't address the cause of the lower profits.
(C) says the new jets carry twice as many passengers, so SunDog reduced the number of daily flights. This may reduce some operating costs, but it doesn't directly explain why profits fell.
(D) says the regional jets use less fuel per passenger than the old planes. This weakens the idea that the new jets are more expensive overall, but higher operating costs could still come from maintenance, leasing, or other expenses. So it only weakens the argument slightly.
(E) is the correct answer because it provides a much stronger alternative explanation. If about 35% of the fares were promotional tickets sold at a price equal to the airline's own cost, then SunDog earned essentially no profit on those tickets. Selling many tickets at break-even prices could easily explain why profits fell despite higher sales. This means the lower profits may have been caused by aggressive promotional pricing rather than the higher operating costs of the new jets.
Answer: Option E
- In 2015, SunDog replaced turboprop planes with regional jets on routes over 300 miles.
- Even though the airline sold more fares, its profits were lower.
- Therefore, the CEO concludes that the higher operating costs of the regional jets caused the decline in profits.
(A) says other airlines using regional jets had higher profits. This suggests regional jets can be profitable, but those airlines may have different routes, pricing, or costs. It doesn't directly explain SunDog's lower profits.
(B) says passengers rated the new jets higher for comfort and reliability. This actually makes it less likely that the new jets hurt the business and doesn't address the cause of the lower profits.
(C) says the new jets carry twice as many passengers, so SunDog reduced the number of daily flights. This may reduce some operating costs, but it doesn't directly explain why profits fell.
(D) says the regional jets use less fuel per passenger than the old planes. This weakens the idea that the new jets are more expensive overall, but higher operating costs could still come from maintenance, leasing, or other expenses. So it only weakens the argument slightly.
(E) is the correct answer because it provides a much stronger alternative explanation. If about 35% of the fares were promotional tickets sold at a price equal to the airline's own cost, then SunDog earned essentially no profit on those tickets. Selling many tickets at break-even prices could easily explain why profits fell despite higher sales. This means the lower profits may have been caused by aggressive promotional pricing rather than the higher operating costs of the new jets.
Answer: Option E
15 Jul 2026, 23:18
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from 2015, SA replaced its turboprop planes with regional jets for all routes longer than 300 miles.
SA sold between 10 and 30% more fares in 2015 than in any of the previous five years. but it recorded substantially lower profit for each quarter of 2015 than for the same quarter in any of previous 5 years.
CEO said higher operating costs were responsible for decline in profit. (typical CEO remarks without looking from all angles just to look good in front of media)
he/she must be assuming that they had more flights with routes longer than 300 miles and since they sold 10 to 30% higher fares and profits were lower each quarter, concluded its operating cost was the reason for higher cost.
A but all those airlines might have enough ways to maintain the RJ. or may be they might have raised the price for this flights. so not much to counter here, out.
B who cares about this to counter the CEO. it would rather give more of reason to hold onto his/her remarks of operational cost since people like this flights more. so out.
C since each RJ carries twice as many people, they reduced the num of flight operates in day. but still it has no impact on operational capabilities at all. out.
D they used less fuel but it has no impact on revenue or cost or anything like that.
E so here they are selling the 35% of the tickets at discounted price that means the revenue has already been dented due to that. so its not operational cost but lower ticket prices that drove their profitability down. keep.
choice E
SA sold between 10 and 30% more fares in 2015 than in any of the previous five years. but it recorded substantially lower profit for each quarter of 2015 than for the same quarter in any of previous 5 years.
CEO said higher operating costs were responsible for decline in profit. (typical CEO remarks without looking from all angles just to look good in front of media)
he/she must be assuming that they had more flights with routes longer than 300 miles and since they sold 10 to 30% higher fares and profits were lower each quarter, concluded its operating cost was the reason for higher cost.
A but all those airlines might have enough ways to maintain the RJ. or may be they might have raised the price for this flights. so not much to counter here, out.
B who cares about this to counter the CEO. it would rather give more of reason to hold onto his/her remarks of operational cost since people like this flights more. so out.
C since each RJ carries twice as many people, they reduced the num of flight operates in day. but still it has no impact on operational capabilities at all. out.
D they used less fuel but it has no impact on revenue or cost or anything like that.
E so here they are selling the 35% of the tickets at discounted price that means the revenue has already been dented due to that. so its not operational cost but lower ticket prices that drove their profitability down. keep.
choice E
Bunuel
15 Jul 2026, 23:23
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CEO's Conclusion: The jet's higher operating costs were responsible for the decline in profits.
To weken this conclusion, we need to find the explanation for the decrease in profits.
A - What other airlines are doing is not explaining why this one's profit is declining. No relevence is given.
B - Preference does explain the decline, it shoult have increased the profit.
C - Tempting, but it weakens the idea itself that operating cost caused the profit decline. However, we need to find the reason of profit decline that doesn't comes due to operating cost.
D - It contradicts the given fact that the jets have higher operating cost.
E - It explains teh rreson of profir decline that is not due to operating cost. It is due to the promotional fares are sold at airline's own per - passenger cost. that's why even after selling more face, profit is lesser.
Answer : E
To weken this conclusion, we need to find the explanation for the decrease in profits.
A - What other airlines are doing is not explaining why this one's profit is declining. No relevence is given.
B - Preference does explain the decline, it shoult have increased the profit.
C - Tempting, but it weakens the idea itself that operating cost caused the profit decline. However, we need to find the reason of profit decline that doesn't comes due to operating cost.
D - It contradicts the given fact that the jets have higher operating cost.
E - It explains teh rreson of profir decline that is not due to operating cost. It is due to the promotional fares are sold at airline's own per - passenger cost. that's why even after selling more face, profit is lesser.
Answer : E
Bunuel
