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Metropolis-area dry cleaners have had a steady increase in business

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Metropolis-area dry cleaners have had a steady increase in business [#permalink]

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New post 26 Dec 2017, 17:02
00:00
A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

53% (01:33) correct 47% (01:35) wrong based on 78 sessions

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Metropolis-area dry cleaners have had a steady increase in business over the past year, and in order to take advantage of this trend and expand its market share, Neuman’s Dry Cleaning is planning to expand its facilities to enable it to handle a higher volume of garments. Neuman’s will maintain the same prices and weekly specials that it has employed for the past several years.

The potential success of Neuman’s plan to increase its market share is most called into question by which of the following, if true?

A. Neuman’s share of the local dry cleaning market has declined over the past year, but its dry cleaning facilities are always at maximum capacity.
B. The average turnaround time to get a garment dry cleaned at Neuman’s is slightly longer now than it was a year ago.
C. Most customers are not aware that Mr. Neuman sold his dry cleaning company to a franchise five years ago and no longer runs the facility himself.
D. Neuman’s is one of the two most popular dry cleaners in Metropolis.
E. Despite a recent increase in advertising, Neuman’s has been slightly less busy over the past six months than it was previously.
[Reveal] Spoiler: OA

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New post 26 Dec 2017, 19:39
DPANJA wrote:
Looks B

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I answered b but it is incorrect


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Last edited by gmatFalcon on 26 Dec 2017, 19:42, edited 1 time in total.

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Re: Metropolis-area dry cleaners have had a steady increase in business [#permalink]

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New post 26 Dec 2017, 19:45
Sandeep AVK wrote:
Is nt it E?

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Yes it is E


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New post 26 Dec 2017, 20:00
Is it A
As shows that recent increase in business last year has not effected Neumans Dry Cleaning

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Metropolis-area dry cleaners have had a steady increase in business [#permalink]

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New post 26 Dec 2017, 20:05
gmatFalcon wrote:
I don't get it

The initial statement tells us that market Situation for dry cleaners has been going up in the past year. Statement E gives us the Information that despite an increase in advertising Neuman was less busy. Combine that with the market uptrend and you can infer that the Business isn't going relatively well for this company.

Thus we can conclude that an expension of Neumann's facilities doesn't solve any problems and will most likely not lead to an increased market share.

Hope that helps :)
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New post 26 Dec 2017, 20:06
vishwajeet2015 wrote:
Is it A
As shows that recent increase in business last year has not effected Neumans Dry Cleaning

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A strengthen the argument
Facilities are always at high capacity


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New post 26 Dec 2017, 20:06
It cannot be A because, this is infact supporting it by stating that the facilities are at its maximum capacity

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New post 26 Dec 2017, 23:08
why answer is not B? it gives another reason that despite facility expansion, neuman would not be able to capture market share

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Re: Metropolis-area dry cleaners have had a steady increase in business   [#permalink] 26 Dec 2017, 23:08
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