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

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Manager
Joined: 29 Sep 2006
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Mechanicorp s newest product costs so little to make that it [#permalink]

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01 Nov 2006, 17:06
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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 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 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 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.

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Senior Manager
Joined: 02 Sep 2006
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01 Nov 2006, 17:42
I'd choose B cus the passage implies that the price would increase.

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Senior Manager
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01 Nov 2006, 18:09
I think it should be A....because the passage mentions "it appears doubtful the company will be able to sell it "

A supports that
"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. "

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Senior Manager
Joined: 11 Jul 2006
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Location: TX

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01 Nov 2006, 21:46
Yes A ..

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VP
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Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)

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01 Nov 2006, 21:53
I couldn't understand the question really well.. but from whatever I understand A seems best.

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Senior Manager
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01 Nov 2006, 23:23
would go for A.....B seems to weaken it...I must admit that argument was not clear me as I believe there are some typo or other mistakes which are making it tough to understand..

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Manager
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01 Nov 2006, 23:33
Torn between A and B.

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VP
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02 Nov 2006, 06:07
ayushi wrote:
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 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 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 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.

The highlighted words made me to go for A instead of B.
_________________

The path is long, but self-surrender makes it short;
the way is difficult, but perfect trust makes it easy.

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Manager
Joined: 29 Sep 2006
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02 Nov 2006, 06:53
OA is A

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02 Nov 2006, 06:53
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# Mechanicorp s newest product costs so little to make that it

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