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# Lightbox, Inc., owns almost all of the movie theaters in

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Manager
Joined: 08 Apr 2004
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Lightbox, Inc., owns almost all of the movie theaters in [#permalink]

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20 Sep 2004, 06:01
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Lightbox, Inc., owns almost all of the movie theaters in Washington County and has announced plans to double the number of movie screens it has in the county within five years. Yet attendance at Lightboxâ€™s theaters is only just large enough for profitability now and the countyâ€™s population is not expected to increase over the next ten years. Clearly, therefore, if there is indeed no increase in population, Lightboxâ€™s new screens are unlikely to prove profitable.

Which of the following, if true about Washington County, most seriously weakens the argument?

A. Though little change in the size of the population is expected, a pronounced shift toward a younger, more affluent, and more entertainment-oriented population is expected to occur.
B. The sales of snacks and drinks in its movie theaters account for more of Lightboxâ€™s profits than ticket sales do.
C. In selecting the mix of movies shown at its theaters, Lightboxâ€™s policy is to avoid those that appeal to only a small segment of the moviegoing population.
D. Spending on video purchases, as well as spending on video rentals, is currently no longer increasing.
E. There are no population centers in the county that are not already served by at least one of the movie theaters that Lightbox owns and operates.

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Director
Joined: 05 May 2004
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Location: San Jose, CA
Re: CR : movie theater [#permalink]

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20 Sep 2004, 15:32
I think it is A

The arg says that "attendance at Lightboxâ€™s theaters is only just large enough for profitability now "
People will buy snacks/drinks only when they visit the theatre. If the number of people visiting theatres donot increase .... the sales for food and drinks will also not increase.
A gives a reason that might bring more crowd to theatres in future and hence can make the theatre expansion project justifiable!

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GMAT Club Legend
Joined: 15 Dec 2003
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20 Sep 2004, 15:43
Absolutely A. B justifies the author's claim since ticket sales are lower, there will be no reason to increase the number of screens
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Best Regards,

Paul

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GMAT Club Legend
Joined: 07 Jul 2004
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Location: Singapore

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20 Sep 2004, 19:03
A. Though little change in the size of the population is expected, a pronounced shift toward a younger, more affluent, and more entertainment-oriented population is expected to occur.
- We're told there is going to be a shift in theater-goers to younger more affluent and more entertainment oriented population. New theaters could serve this population or lightbox can capitalize by screening more shows that cater to this population at its new theaters. At the end of the day, profit is still viable.

B. The sales of snacks and drinks in its movie theaters account for more of Lightboxâ€™s profits than ticket sales do.
- Even if this is true, you still need a population large enough to visit the extra cinemas that are going to pop up. B is out.

C. In selecting the mix of movies shown at its theaters, Lightboxâ€™s policy is to avoid those that appeal to only a small segment of the moviegoing population.
- Still dependent on population filling up the extra spaces. C is out.

D. Spending on video purchases, as well as spending on video rentals,is currently no longer increasing.
- Out of scope

E. There are no population centers in the county that are not already served by at least one of the movie theaters that Lightbox owns and operates.
- all the more reason not to build extra theaters unless population increases. E is out.

A is my choice.

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20 Sep 2004, 19:03
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# Lightbox, Inc., owns almost all of the movie theaters in

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