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28 Jun 2024, 14:03
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
40% (02:11) correct
60%
(02:20)
wrong
based on 243
sessions
History
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Not Attempted Yet
Most large retail stores hold sales in the month of January. The original idea of price reduction campaigns in January became popular when it was realized that sales of products would generally slow down following the Christmas rush, were it not for some incentive. The lack of demand could be solved by the simple solution of reducing prices. There is now an increasing tendency among major department stores in large urban centers to have their “January sales” begin before Christmas, some time before the end of the calendar year. The idea behind this trend is to endeavor to sell the maximum amount of stock at a profit, even if that may not be at the maximum profit.
Which of the following conclusions cannot be drawn from the above?
(A) The incidence of “early” January sales results in the lower holdings of stocks with the corollary of lower stock holding costs.
(B) Demand is a function of price; as you lower price, demand increases.
(C) Major stores seem to think it makes sense to have the January sales campaigns pre-Christmas.
(D) It is becoming less popular to start the January sales in the New Year.
(E) The major department stores do not worry as much about profit maximization as they do about sales maximization.
Which of the following conclusions cannot be drawn from the above?
(A) The incidence of “early” January sales results in the lower holdings of stocks with the corollary of lower stock holding costs.
(B) Demand is a function of price; as you lower price, demand increases.
(C) Major stores seem to think it makes sense to have the January sales campaigns pre-Christmas.
(D) It is becoming less popular to start the January sales in the New Year.
(E) The major department stores do not worry as much about profit maximization as they do about sales maximization.
19 Jul 2024, 11:21
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Bunuel KarishmaB GMATNinja CrackverbalGMAT
Hello Experts! Please help me here
What does Option A even mean?
And why are Option D and Option E incorrect?
Thanks in Advance
Hello Experts! Please help me here
What does Option A even mean?
And why are Option D and Option E incorrect?
Thanks in Advance
19 Jul 2024, 21:32
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Options D and E are not possible as they are already stated in the argument
For E, It's written in the last line that despite having lower profits they are selling it, so they don't care about profits.
For D, Check this line There is now an increasing tendency.
For A, it is irrelevant, this line suggests that when "early" January sales occur, businesses sell off a significant portion of their stock inventory at the beginning of the year—this reduction in inventory results in businesses holding fewer stocks. As a result of holding less inventory, the costs associated with storing and managing stock (stock holding costs) are reduced. In summary, early January sales lead to lower inventory levels, leading to lower costs for holding that inventory.
For E, It's written in the last line that despite having lower profits they are selling it, so they don't care about profits.
For D, Check this line There is now an increasing tendency.
For A, it is irrelevant, this line suggests that when "early" January sales occur, businesses sell off a significant portion of their stock inventory at the beginning of the year—this reduction in inventory results in businesses holding fewer stocks. As a result of holding less inventory, the costs associated with storing and managing stock (stock holding costs) are reduced. In summary, early January sales lead to lower inventory levels, leading to lower costs for holding that inventory.
