GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 19 Oct 2018, 10:44

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Manufacturers of inkjet printers earn most of their profits from the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
User avatar
G
Joined: 01 Sep 2016
Posts: 197
GMAT 1: 690 Q49 V35
GMAT ToolKit User Reviews Badge
Manufacturers of inkjet printers earn most of their profits from the  [#permalink]

Show Tags

New post 01 Oct 2017, 01:06
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

86% (01:30) correct 14% (01:41) wrong based on 110 sessions

HideShow timer Statistics

Manufacturers of inkjet printers earn most of their profits from the sale of ink cartridges rather than from the sale of the printers. The PRQ Company's profits have declined in recent years because other manufacturers are selling ink cartridges compatible with PRQ printers at a lower price than PRQ can match. PRQ is responding by designing a printer that will only accept a new specially designed PRQ cartridge, which will sell for the same price as its current ink cartridges. The company projects that the new printer will create a surge in sales of the new compatible cartridges.

Which of the following, if true, would strengthen the projection that PRQ's plan will result in an increase in its cartridge sales?

A) Sales of printers are expected to drop within the next year, but then increase over five years.
B) Another printer manufacturer recently announced a plan to manufacture a printer that is only compatible with its own cartridges.
C) First time buyers of printers will generally buy the least expensive model.
D) Consumers showed a strong preference for PRQ's newly designed printer in several test markets.
E) PRQ's engineering and design division is studying methods of manufacturing printer cartridges at a lower cost.

_________________

we shall fight on the beaches,
we shall fight on the landing grounds,
we shall fight in the fields and in the streets,
we shall fight in the hills;
we shall never surrender!

RC Moderator
User avatar
P
Joined: 24 Aug 2016
Posts: 401
Location: Canada
Concentration: Entrepreneurship, Operations
GMAT 1: 630 Q48 V28
GMAT ToolKit User Reviews Badge CAT Tests
Re: Manufacturers of inkjet printers earn most of their profits from the  [#permalink]

Show Tags

New post 25 Mar 2018, 07:11
bkpolymers1617 wrote:
Manufacturers of inkjet printers earn most of their profits from the sale of ink cartridges rather than from the sale of the printers. The PRQ Company's profits have declined in recent years because other manufacturers are selling ink cartridges compatible with PRQ printers at a lower price than PRQ can match. PRQ is responding by designing a printer that will only accept a new specially designed PRQ cartridge, which will sell for the same price as its current ink cartridges. The company projects that the new printer will create a surge in sales of the new compatible cartridges.

Which of the following, if true, would strengthen the projection that PRQ's plan will result in an increase in its cartridge sales?

A) Sales of printers are expected to drop within the next year, but then increase over five years.
B) Another printer manufacturer recently announced a plan to manufacture a printer that is only compatible with its own cartridges.
C) First time buyers of printers will generally buy the least expensive model.
D) Consumers showed a strong preference for PRQ's newly designed printer in several test markets.
E) PRQ's engineering and design division is studying methods of manufacturing printer cartridges at a lower cost.


Option A: This option talks about the general expected sales trend of the printers not specific about PRQ.
Option B: This option talks about another mfg co also deploying the same ploy as PRQ . So there are lot of Qs. Nothing specific about PRQ.
Option C: This is about the buyers .... nothing talks about PRQ or the price of PRQ's printers in the the market compared to the printers from the other players.

Option D: CORRECT if the 'Consumers showed a strong preference for PRQ's newly designed printer in several test markets' then itsvery likely that they will be buying the product when introduced to the market, resulting in increase in sales of the printer and thus intern increase in sales of printer cartridges.

Option E: Ok. But, query remains as :will they be successfull?. If successful, will the consumers want to buy that in a quantity that translate to increase in sale for PRQ?
_________________

Please let me know if I am going in wrong direction.
Thanks in appreciation.

GMAT Club Bot
Re: Manufacturers of inkjet printers earn most of their profits from the &nbs [#permalink] 25 Mar 2018, 07:11
Display posts from previous: Sort by

Manufacturers of inkjet printers earn most of their profits from the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.