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Manager
Joined: 21 Oct 2017
Posts: 70
Given Kudos: 125
Location: France
Concentration: Entrepreneurship, Technology
GMAT 1: 750 Q48 V44 
GPA: 4
WE:Project Management (Internet and New Media)
Over the last few years, the demand for breakfast cereals produced by
[#permalink]
11 Nov 2017, 18:17
11 Nov 2017, 18:17
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A
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Difficulty:
65%
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Question Stats:
54% (01:46) correct
46%
(01:59)
wrong
based on 280
sessions
Over the last few years, the demand for breakfast cereals produced by Foods, Inc. has increased significantly. According to the experts, this increase is accounted for by the fact that the market for breakfast cereals is going through a phase of rapid growth, which is predicted to continue for the next several years. In response to this forecast, Foods, Inc. is thinking about retooling its currently idle granola bar plant to make breakfast cereals in order to increase its revenues.
Which of the following would be most useful for Foods, Inc. to know in evaluating the plan it is considering?
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
B) Whether demand for other breakfast foods is also expected to increase.
C) Whether demand for granola bars is projected to increase in the near future.
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
Source: AdmitMaster online platform (GoGMAT)
Which of the following would be most useful for Foods, Inc. to know in evaluating the plan it is considering?
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
B) Whether demand for other breakfast foods is also expected to increase.
C) Whether demand for granola bars is projected to increase in the near future.
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
Source: AdmitMaster online platform (GoGMAT)
Re: Over the last few years, the demand for breakfast cereals produced by
[#permalink]
11 Nov 2017, 22:30
11 Nov 2017, 22:30
2
Kudos
Expert Reply
Hadrienlbb wrote:
Over the last few years, the demand for breakfast cereals produced by Foods, Inc. has increased significantly. According to the experts, this increase is accounted for by the fact that the market for breakfast cereals is going through a phase of rapid growth, which is predicted to continue for the next several years. In response to this forecast, Foods, Inc. is thinking about retooling its currently idle granola bar plant to make breakfast cereals in order to increase its revenues.
Which of the following would be most useful for Foods, Inc. to know in evaluating the plan it is considering?
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
B) Whether demand for other breakfast foods is also expected to increase.
C) Whether demand for granola bars is projected to increase in the near future.
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
Source: AdmitMaster online platform (GoGMAT)
Which of the following would be most useful for Foods, Inc. to know in evaluating the plan it is considering?
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
B) Whether demand for other breakfast foods is also expected to increase.
C) Whether demand for granola bars is projected to increase in the near future.
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
Source: AdmitMaster online platform (GoGMAT)
Hi..
the PARA generally talks of maximizing PROFIT by shifting from A to B as A is not in use and B is finding demand
without even looking at the choices, you should have the question what if there is some season favorable to A round the corner - won't it go against the VERY reason we are planning to shift.
This very reason is mentioned in C hence our answer
but lets see how we can eliminate other choices
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
Plan is to retool from G to B, so OUT of scope
B) Whether demand for other breakfast foods is also expected to increase.
Again Plan is to retool from G to B, so OUT of scope
C) Whether demand for granola bars is projected to increase in the near future.
Correct. what if G is to increase in future, there is no use of retooling as we will have to again reconvert to meet demand of G
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
TRAP.. one can fall for it..
but we are already retooling the plant, so the plan is not dependent on this
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
We are talking of present, so out of context
C
Manager
Joined: 21 Oct 2017
Posts: 70
Given Kudos: 125
Location: France
Concentration: Entrepreneurship, Technology
GMAT 1: 750 Q48 V44
GPA: 4
WE:Project Management (Internet and New Media)
Re: Over the last few years, the demand for breakfast cereals produced by
[#permalink]
12 Nov 2017, 20:53
12 Nov 2017, 20:53
chetan2u wrote:
Hadrienlbb wrote:
Over the last few years, the demand for breakfast cereals produced by Foods, Inc. has increased significantly. According to the experts, this increase is accounted for by the fact that the market for breakfast cereals is going through a phase of rapid growth, which is predicted to continue for the next several years. In response to this forecast, Foods, Inc. is thinking about retooling its currently idle granola bar plant to make breakfast cereals in order to increase its revenues.
Which of the following would be most useful for Foods, Inc. to know in evaluating the plan it is considering?
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
B) Whether demand for other breakfast foods is also expected to increase.
C) Whether demand for granola bars is projected to increase in the near future.
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
Source: AdmitMaster online platform (GoGMAT)
Which of the following would be most useful for Foods, Inc. to know in evaluating the plan it is considering?
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
B) Whether demand for other breakfast foods is also expected to increase.
C) Whether demand for granola bars is projected to increase in the near future.
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
Source: AdmitMaster online platform (GoGMAT)
Hi..
the PARA generally talks of maximizing PROFIT by shifting from A to B as A is not in use and B is finding demand
without even looking at the choices, you should have the question what if there is some season favorable to A round the corner - won't it go against the VERY reason we are planning to shift.
This very reason is mentioned in C hence our answer
but lets see how we can eliminate other choices
A) Whether the increased demand for breakfast cereals, if met, is likely to lead to an increase in the demand for dairy products.
Plan is to retool from G to B, so OUT of scope
B) Whether demand for other breakfast foods is also expected to increase.
Again Plan is to retool from G to B, so OUT of scope
C) Whether demand for granola bars is projected to increase in the near future.
Correct. what if G is to increase in future, there is no use of retooling as we will have to again reconvert to meet demand of G
D) Whether equipment used for producing granola bars is suitable for making breakfast cereals.
TRAP.. one can fall for it..
but we are already retooling the plant, so the plan is not dependent on this
E) Whether per capita consumption of breakfast cereals is expected to grow in the next several years.
We are talking of present, so out of context
C
Amazing answer. I actually did fall for D the first time. Love your explanation better than the one I originally got. Thanks!
