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 22 Feb 2017, 06:19

### 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

Author Message
TAGS:

### Hide Tags

Senior Manager
Joined: 11 Jan 2006
Posts: 269
Location: Chennai,India
Followers: 1

Kudos [?]: 4 [0], given: 0

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

### Show Tags

09 Feb 2006, 22:00
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) 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.
_________________

vazlkaiye porkalam vazltuthan parkanum.... porkalam maralam porkalthan maruma

If you have any questions
New!
VP
Joined: 21 Sep 2003
Posts: 1065
Location: USA
Followers: 3

Kudos [?]: 76 [0], given: 0

### Show Tags

09 Feb 2006, 22:36
My pick would be A.

IMO, B is not strongly supported by the argument. It is just mentioned that Mechanicorp has a reputation built on fair pricing policy. Nothing is stated about the profitability of the company.

C/D/E are way off.
_________________

"To dream anything that you want to dream, that is the beauty of the human mind. To do anything that you want to do, that is the strength of the human will. To trust yourself, to test your limits, that is the courage to succeed."

- Bernard Edmonds

Manager
Joined: 01 Feb 2006
Posts: 100
Followers: 1

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

### Show Tags

09 Feb 2006, 22:37
A. It's the most strongly supported option.
Senior Manager
Joined: 11 Nov 2005
Posts: 328
Location: London
Followers: 1

Kudos [?]: 11 [0], given: 0

### Show Tags

10 Feb 2006, 14:30
A.

I will go with A as well.
Senior Manager
Joined: 11 Jan 2006
Posts: 269
Location: Chennai,India
Followers: 1

Kudos [?]: 4 [0], given: 0

### Show Tags

11 Feb 2006, 08:42
thnks girish for the explanation , the OA is A
_________________

vazlkaiye porkalam vazltuthan parkanum.... porkalam maralam porkalthan maruma

Senior Manager
Joined: 22 Nov 2005
Posts: 476
Followers: 2

Kudos [?]: 20 [0], given: 0

### Show Tags

11 Feb 2006, 10:06
Late, but IMO A is correct.
VP
Joined: 06 Jun 2004
Posts: 1059
Location: CA
Followers: 2

Kudos [?]: 149 [0], given: 0

### Show Tags

11 Feb 2006, 18:33
Agree with Giddi's explanation, A it is
_________________

Don't be afraid to take a flying leap of faith.. If you risk nothing, than you gain nothing...

Senior Manager
Joined: 05 Jan 2006
Posts: 382
Followers: 1

Kudos [?]: 89 [0], given: 0

### Show Tags

11 Feb 2006, 19:37
A is my pick too
SVP
Joined: 28 Dec 2005
Posts: 1575
Followers: 3

Kudos [?]: 150 [0], given: 2

### Show Tags

12 Feb 2006, 08:06
yup A for me as well
VP
Joined: 20 Sep 2005
Posts: 1021
Followers: 3

Kudos [?]: 35 [0], given: 0

### Show Tags

13 Feb 2006, 22:14
A....if the company sets a fair price...clients won't trust.
.....if the company adds markup..reputation goes down the drain...CATCH 22.
Intern
Joined: 24 Jan 2006
Posts: 15
Followers: 0

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

### Show Tags

16 Feb 2006, 14:03
Can anybody explain why it can't be B ? Because in the argument it is written that the mechanicorps earn moderate amount of profit per unit sale and is able to maintain fair reputation on fair price.So can;t it be true that the company is earning profits despite of small profits per unit sold.
Manager
Joined: 27 Jan 2006
Posts: 104
Location: Barcelona
Followers: 1

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

### Show Tags

16 Feb 2006, 14:21

So can;t it be true that the company is earning profits despite of small profits per unit sold.

It could be true that the company could earn profits but "How much" is not mentioned in the question stem.
Where as the problems with low Price and company reputation is mentioned in the stem.
_________________

...................................................................

16 Feb 2006, 14:21
Similar topics Replies Last post
Similar
Topics:
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
1 Mechanicorp s newest product costs so little to make that it 7 10 Jan 2008, 06:39
Display posts from previous: Sort by