Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

It is currently 26 May 2017, 05:15

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

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

Senior Manager
Senior Manager
avatar
Joined: 16 Jul 2009
Posts: 256
Followers: 6

Kudos [?]: 367 [0], given: 3

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

Show Tags

New post 16 Oct 2009, 13:18
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

56% (01:51) correct 44% (01:38) wrong based on 35 sessions

HideShow timer Statistics

Mechanicorp’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 Mechanicorp’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 company’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) Mechanicorp’s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.
(E) Mechanicorp’s production processes are designed with the same ingenuity as are the products that the company makes.
Request Expert Reply
If you have any questions
you can ask an expert
New!
Manager
Manager
avatar
Joined: 12 Oct 2009
Posts: 115
Followers: 2

Kudos [?]: 65 [0], given: 3

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 16 Oct 2009, 14:10
will go with B
Manager
Manager
avatar
Joined: 08 Oct 2009
Posts: 62
Followers: 1

Kudos [?]: 23 [0], given: 5

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 16 Oct 2009, 14:45
I vote for [A].
Senior Manager
Senior Manager
avatar
Joined: 01 Mar 2009
Posts: 367
Location: PDX
Followers: 6

Kudos [?]: 91 [0], given: 24

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 16 Oct 2009, 15:26
A) Mechanicorp will encounter difficulties in trying to set a price for its newest product that will promote sales without threatening to compromise the company’s reputation.
Correct
(B) Mechanicorp achieves large annual profits, despite small profits per unit sold, by means of a high volume of sales.
Irrelevant
(C) Mechanicorp made a significant computational error in calculating the production costs for its newest product.
Out of scope
(D) Mechanicorp’s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.
Out of scope
(E) Mechanicorp’s production processes are designed with the same ingenuity as are the products that the company makes.
Out of scope
_________________

In the land of the night, the chariot of the sun is drawn by the grateful dead

Manager
Manager
avatar
Joined: 12 Oct 2009
Posts: 115
Followers: 2

Kudos [?]: 65 [0], given: 3

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 16 Oct 2009, 15:42
gave a thought again. should be A. High price will affect the reputation and customer wont buy the new product at low price hence difficulty in setting price

Asterix
Try/CRy/
Intern
Intern
avatar
Joined: 18 Sep 2009
Posts: 9
Followers: 1

Kudos [?]: 2 [0], given: 1

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 17 Oct 2009, 09:55
A is cancelled because it is given in the stimulus that the co wants to keep a modest profit margin to maintain its reputation.
B - the correct answer.If sales volume is more, per unit fixed cost will go down and ultimately the co can earn huge profit.
C -incorrect because it is given that the co is maintaining modest profit margin.
D -incorrect. Since similar devices are available at less cost the new product cannot be sold.So this is not strengthen the conclusion.
E - Incorrect.Out of scope
Intern
Intern
avatar
Joined: 13 May 2009
Posts: 23
Followers: 0

Kudos [?]: 1 [0], given: 0

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 18 Oct 2009, 03:18
IMO A, as it is mentioned that at low price the product won't sell and if company increases the mark up price than that would be against its current market reputation.
Intern
Intern
avatar
Joined: 18 Sep 2009
Posts: 9
Followers: 1

Kudos [?]: 2 [0], given: 1

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 22 Oct 2009, 00:43
In between the conclusion and premises , I think there is a gap in logic.Correct answer choice bridges the gap. Answer A, according to me bridges the gap.So this is the correct answer.
Manager
Manager
User avatar
Joined: 06 Sep 2009
Posts: 113
Followers: 2

Kudos [?]: 27 [0], given: 3

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 22 Oct 2009, 02:06
we have a dualism here:
on hand: the product's fair price is low and this would compromise consumer's perception of quality. Therefore, it would be reasonable to put its price above the fair price.

on the other hand: Mechanicorp's reputation is based on fair prices.

the only answer which has this dualism is A
Manager
Manager
User avatar
Joined: 15 Jan 2008
Posts: 56
Followers: 1

Kudos [?]: 6 [0], given: 1

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 22 Oct 2009, 08:02
I go for B,

A) It re-state the statement above without supplying additional premise or fix a clause.
B) It's correct to supply additional premise to support the statement above
C) Weaken the statement
D and E are irrelevant

So what is OA?
_________________

Remember to give kudos if it's useful for you !!!

Retired Moderator
avatar
Joined: 03 Aug 2010
Posts: 241
Followers: 2

Kudos [?]: 37 [0], given: 41

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 05 Jan 2011, 10:15
can someone give a concrete conclusion as to how A is correct answer
_________________

http://www.gmatpill.com/gmat-practice-test/

Amazing Platform

Retired Moderator
User avatar
Status: 2000 posts! I don't know whether I should feel great or sad about it! LOL
Joined: 04 Oct 2009
Posts: 1672
Location: Peru
Schools: Harvard, Stanford, Wharton, MIT & HKS (Government)
WE 1: Economic research
WE 2: Banking
WE 3: Government: Foreign Trade and SMEs
Followers: 103

Kudos [?]: 992 [0], given: 109

Re: Mechanicorp’s Product Costs [#permalink]

Show Tags

New post 05 Jan 2011, 15:18
+1 A

OA?
_________________

"Life’s battle doesn’t always go to stronger or faster men; but sooner or later the man who wins is the one who thinks he can."

My Integrated Reasoning Logbook / Diary: http://gmatclub.com/forum/my-ir-logbook-diary-133264.html

GMAT Club Premium Membership - big benefits and savings

Manager
Manager
avatar
Joined: 09 Jul 2010
Posts: 122
Followers: 0

Kudos [?]: 19 [0], given: 2

GMAT ToolKit User
Re: Mechanicorp s newest product costs so little to make that it [#permalink]

Show Tags

New post 08 Mar 2012, 16:01
Official Answer please?

Thanks
Manager
Manager
User avatar
Joined: 01 Nov 2010
Posts: 179
Location: Zürich, Switzerland
Followers: 2

Kudos [?]: 45 [0], given: 20

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

Show Tags

New post 08 Mar 2012, 16:18
What is the official answer?
Intern
Intern
avatar
Joined: 03 Feb 2012
Posts: 8
Followers: 0

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

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

Show Tags

New post 08 Mar 2012, 19:08
It's not a "strengthen" question, it's a "Must be True" question.


Answer should be A
Intern
Intern
User avatar
Joined: 16 Mar 2013
Posts: 21
Location: Bangladesh
Concentration: Finance, Entrepreneurship
Schools: Kellogg '16
GPA: 3.64
Followers: 0

Kudos [?]: 10 [0], given: 29

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

Show Tags

New post 01 Jun 2013, 00:27
I got A. this is not "strengthen" question rather this is "Must Be True" question...
OA is A.
Re: Mechanicorp s newest product costs so little to make that it   [#permalink] 01 Jun 2013, 00:27
    Similar topics Author Replies Last post
Similar
Topics:
3 Experts publish their posts in the topic #Top150 CR: Macro system’s new range of decongestors costs so little souvik101990 2 30 Dec 2015, 11:57
10 Most parents make little use of baby clothing. For example, Gnpth 13 21 May 2017, 19:55
17 Mechanicorp s newest product costs so little to make that it ajit257 8 23 Jul 2016, 12:10
5 Experts publish their posts in the topic Mechanicorp s newest product costs so little to make that it dancinggeometry 13 26 Aug 2016, 05:18
1 Mechanicorp s newest product costs so little to make that it tarek99 7 02 Jun 2015, 00:45
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  


cron

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

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®.