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# In January of last year the Moviemania chain of movie

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Manager
Joined: 08 Apr 2004
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Location: Corea
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In January of last year the Moviemania chain of movie [#permalink]

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23 Sep 2004, 16:50
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80% (01:30) correct 20% (00:04) wrong based on 15 sessions

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In January of last year the Moviemania chain of movie theaters started propping its popcorn in canola oil, instead of the less healthful coconut oil that it had been using until then. Now Moviemania is planning to switch back, saying that the change has hurt popcorn sales. That claim is false, however, since according to Moviemaniaâ€™s own sales figures, Moviemania sold 5 percent more popcorn last year than in the previous year.

Which of the following, if true, most strongly supports the argument against Moviemaniaâ€™s claim?

A. Total sales of all refreshments at Moviemaniaâ€™s movie theaters increased by less than 5 percent last year.
B. Moviemania makes more money on food and beverages sold at its theaters than it does on sales of movie tickets.
C. Moviemaniaâ€™s customers prefer the taste of popcorn popped in coconut oil to that of popcorn popped in canola oil.
D. Total attendance at Moviemaniaâ€™s movie theaters was more than 20 percent higher last year than the year before.
E. The year before last, Moviemania experienced a 10 percent increase in popcorn sales over the previous year.
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Manager
Joined: 21 Aug 2004
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23 Sep 2004, 19:32
In January of last year the Moviemania chain of movie theaters started propping its popcorn in canola oil, instead of the less healthful coconut oil that it had been using until then. Now Moviemania is planning to switch back, saying that the change has hurt popcorn sales. That claim is false, however, since according to Moviemaniaâ€™s own sales figures, Moviemania sold 5 percent more popcorn last year than in the previous year.

Which of the following, if true, most strongly supports the argument against Moviemaniaâ€™s claim?

Total sales of all refreshments at Moviemaniaâ€™s movie theaters increased by less than 5 percent last year. Possible Answer. If Moviemania chain sold 5% increase in popcorn sales whiles all other refreshments sold below 5% percent, it sales in general were bad and therefore it is not the changing over from one oil to the other that hurt sales. Sales were generally bad.
B. Moviemania makes more money on food and beverages sold at its theaters than it does on sales of movie tickets.
C. Moviemaniaâ€™s customers prefer the taste of popcorn popped in coconut oil to that of popcorn popped in canola oil.
D. Total attendance at Moviemaniaâ€™s movie theaters was more than 20 percent higher last year than the year before.
E. The year before last, Moviemania experienced a 10 percent increase in popcorn sales over the previous year.
Director
Joined: 16 Jun 2004
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23 Sep 2004, 20:52
Good one guys.

The thread has some good discussion on this topic
http://www.gmatclub.com/phpbb/viewtopic ... moviemania
SVP
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26 Sep 2004, 10:37
I just had a different reasoning.

If total sales of all refreshments increased by <5% and popocorn sales increased by more than 5% then it says that popularity of pop corn cooked in new oil has hurt the sale of other refreshments hence company's claim is correct
Director
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26 Sep 2004, 12:48
Anand,

Trus if you suppose that there is correlation between sales of new popcorn and sales of other types of food and beverage.
Theoreticaly you re right and we need before concluding A is the right answer to know if +5% pop corn increase in sales was not achieved to the detriment of other sales.
26 Sep 2004, 12:48
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