Lightbox, Inc., owns almost all of the movie theaters in : GMAT Critical Reasoning (CR)
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# Lightbox, Inc., owns almost all of the movie theaters in

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

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17 Dec 2005, 10:37
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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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17 Dec 2005, 13:01
Decline in population ==> will not generate enough revenue to be profitable.

But if a decline in population is coupled with a population that is more willing to go to the movies, assumption will not hold true.

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. Correct!

B. The sales of snacks and drinks in its movie theaters account for more of Lightboxâ€™s profits than ticket sales do. If the new population doesn't go to the movies, the new screens' profits still wouldn't increase

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. Out of scope!

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. Only new screens are discussed, out of scope !
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18 Dec 2005, 12:57
Bump & OA pls
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19 Dec 2005, 00:33
Straight A.

Even without increase in population, more visits to the theater will be made.
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19 Dec 2005, 03:10
OA is A. Very good job guys.
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19 Dec 2005, 09:36
Got A also.
19 Dec 2005, 09:36
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