Mechanicorp s newest product costs so little to make that it : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 23 Feb 2017, 16:33

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Mechanicorp s newest product costs so little to make that it

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

### Hide Tags

Director
Joined: 01 Feb 2003
Posts: 851
Followers: 4

Kudos [?]: 102 [0], given: 0

Mechanicorp s newest product costs so little to make that it [#permalink]

### Show Tags

28 May 2005, 12:44
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:01) correct 0% (00:00) wrong based on 1 sessions

### HideShow timer Statistics

Mechanicorpâ€™s newest product costs so little to make that it appears doubtful the company will be able to sell it without increasing the markup the company usually allows for profit: potential clients would simply not believe that something so inexpensive would really work. Yet Mechanicorpâ€™s reputation is built on fair prices incorporating only modest profit margins.
The statements above, if true, most strongly support which of the following?
(A) Mechanicorp will encounter difficulties in trying to set a price for its newest product that will promote sales without threatening to compromise the companyâ€™s reputation.
(B) Mechanicorp achieves large annual profits, despite small profits per unit sold, by means of a high volume of sales.
(C) Mechanicorp made a significant computational error in calculating the production costs for its newest product.
(D) Mechanicorpâ€™s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.
(E) Mechanicorpâ€™s production processes are designed with the same ingenuity as are the products that the company makes
If you have any questions
you can ask an expert
New!
Director
Joined: 27 Dec 2004
Posts: 905
Followers: 1

Kudos [?]: 44 [0], given: 0

### Show Tags

28 May 2005, 14:34
I think B

(A) Mechanicorp will encounter difficulties in trying to set a price for its newest product that will promote sales without threatening to compromise the companyâ€™s reputation.
This is out because this information has already been provided in the stem thus it is redundant.

(B) Mechanicorp achieves large annual profits, despite small profits per unit sold, by means of a high volume of sales.
This had better be true otherwise, how does Mecanicorp manage to stay in business?

(C) Mechanicorp made a significant computational error in calculating the production costs for its newest product.
This is out of scope because the stem doesnâ€™t mention anything about computational errors

(D) Mechanicorpâ€™s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.
Out of scope

(E) Mechanicorpâ€™s production processes are designed with the same ingenuity as are the products that the company makes
Out of scope. Stem doesnâ€™t discuss anything about other products that the company makes or ingenuity.
Director
Joined: 18 Feb 2005
Posts: 673
Followers: 1

Kudos [?]: 6 [0], given: 0

### Show Tags

28 May 2005, 14:39
Agree with Folaa B it is
Director
Joined: 03 Nov 2004
Posts: 865
Followers: 2

Kudos [?]: 54 [0], given: 0

### Show Tags

28 May 2005, 17:09
One more for B
VP
Joined: 18 Nov 2004
Posts: 1440
Followers: 2

Kudos [?]: 39 [0], given: 0

### Show Tags

28 May 2005, 17:18
"A"...directly supported by the stem that there is a dilemma on what Mechanicorp shud do
SVP
Joined: 05 Apr 2005
Posts: 1731
Followers: 5

Kudos [?]: 74 [0], given: 0

### Show Tags

28 May 2005, 17:34
Another A.
the whole argument is about the difficulties, actually i say it is a paradoxical condition, Machinecorp is going to face in the future.

B is not true because the passage talks nothing about large volume and large annual profits.
Senior Manager
Joined: 07 Nov 2004
Posts: 458
Followers: 2

Kudos [?]: 93 [0], given: 0

### Show Tags

28 May 2005, 20:41
I will pick A.

B is not right because high volume of sale is not guaranteed and I cannot see any inference indicate that from the stem.
Senior Manager
Joined: 21 Mar 2004
Posts: 444
Location: Cary,NC
Followers: 3

Kudos [?]: 69 [0], given: 0

### Show Tags

29 May 2005, 11:29
One more for A. Follows directly from the passage.

BCE are out of scope.
High volumes, computational errors, production processes all don't follow from the passage.
D is also out because nothing is mentioned about other devices.
_________________

ash
________________________
I'm crossing the bridge.........

SVP
Joined: 05 Apr 2005
Posts: 1731
Followers: 5

Kudos [?]: 74 [0], given: 0

### Show Tags

17 Jun 2005, 20:27
OA????????????
Senior Manager
Joined: 17 May 2005
Posts: 272
Location: Auckland, New Zealand
Followers: 1

Kudos [?]: 12 [0], given: 0

### Show Tags

17 Jun 2005, 21:56
I'd say A as that is the most obvious conclusion that can be drawn from the statements
17 Jun 2005, 21:56
Similar topics Replies Last post
Similar
Topics:
Mechanicorp s newest product costs so little to make that it 5 18 Dec 2011, 05:17
17 Mechanicorp s newest product costs so little to make that it 8 05 Jan 2011, 09:03
Mechanicorp s newest product costs so little to make that it 15 16 Oct 2009, 12:18
Mechanicorp s newest product costs so little to make that it 11 18 Mar 2009, 23:29
5 Mechanicorp s newest product costs so little to make that it 13 10 Sep 2008, 22:30
Display posts from previous: Sort by

# Mechanicorp s newest product costs so little to make that it

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

 Powered by phpBB © phpBB Group and phpBB SEO 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®.