jamifahad wrote:
Manufacturers of staplers make the majority of their profit on staples rather than on the staplers themselves. The Office Supply Company, which cannot sell its staples as cheaply as other manufacturers can, plans to alter the design of its stapler so that it will only accept a newly designed Office Supply Company staple, which will be sold at the same price as the Office Supply Company's current staple.
Which of the following, if true, most strongly supports the Office Supply Company's projection that its plan will lead to an increase in its sales of staples?
A. First-time buyers of staplers tend to buy the least expensive staplers available.
B. Annual sales of staplers are expected to double over the next three years.
C. An Office Supply Company cost analyst is studying ways to reduce the cost of manufacturing staples.
D. A competing manufacturer recently announced similar plans to introduce a stapler that would accept only the staple produced by that manufacturer.
E. In extensive test marketing, stapler users found the new Office Supply Company stapler to be noticably superior to other staplers they had used.
I do not agree with OA but then again this question shows we need to pick "best" answer among the answer choices.
Responding to a pm:
There is no ambiguity in this question. The answer is definitely (E).
Manufacturers make the majority of their profit on staples not staplers.
The Office Supply Company, with expensive staples plans to alter the design of its stapler so that it will only accept its own new stapler with same cost as market.
Don't you see a flaw in their plan?
Why will anyone buy their stapler in the first place then? It is the same cost as others but takes only one kind of expensive staples. There has to be something only it will do for which there is a market. It doesn't matter how much the demand for staplers will increase. Why will anyone buy it. Wouldn't they prefer to buy the current ones which can take any cheap staples?
Choice (E) tells you why. The new staplers are superior to the current staplers. This could be a reason why people might buy it despite the more expensive staples. No other option gives you a reason to believe that the company's plan might succeed.