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# Manufacturers of inkjet printers earn most of their profits from the

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Joined: 01 Sep 2016
Posts: 189
GMAT 1: 690 Q49 V35
Manufacturers of inkjet printers earn most of their profits from the  [#permalink]

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01 Oct 2017, 01:06
00:00

Difficulty:

5% (low)

Question Stats:

86% (01:30) correct 14% (01:43) wrong based on 126 sessions

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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.

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Joined: 24 Aug 2016
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GMAT 1: 540 Q49 V16
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Re: Manufacturers of inkjet printers earn most of their profits from the  [#permalink]

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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?
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Re: Manufacturers of inkjet printers earn most of their profits from the   [#permalink] 25 Mar 2018, 07:11
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# Manufacturers of inkjet printers earn most of their profits from the

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