An online retailer that makes its deliveries through a private shippin

Explanation from GMAT FREE, the source

Reading the question: If and when we get confused by this prompt or any prompt, we can start with the simplest part and work from there. We'll use this approach in Reading Comprehension. For example, "exploiting economies in driving routes" may be unclear, but delivering on seven days rather than six is clear. So we start with increased delivery time. That tends to be less cost effective, because of some details about how the deliveries are done, but the company "expects profits to rise with the change."

Creating a filter: We could treat this as an explain question, but here's a little trick: When we have an argument that profits will go up, we can break it into two logical pieces: i) revenues go up and/or ii) costs go down. In this case, the delivery cost is not going down--could the new model bring down some other cost (probably not)? Or increase revenues (more likely)?

We apply the filter, looking for some other cost going down, or revenues going up. Choice (A) doesn't give us that; it's good news for the retailer, but this change has already taken effect, so it's already built into the "before" part of the "before-and-after" comparison that the company is making. Choice (B) gives us what we're looking for: it describes increased revenues, and even revenues that exceed costs. Choice (B) passes the filter. Choice (C) does not give us a rising revenue or lowering cost. Choice (D) is similar to (A), but inferior, because this retailer could have more customers without making more revenue, or they might make a little more revenue but not enough to profit more. Choice (E) basically says there are no one-time costs to the shift, but that doesn't explain why the difference between revenues and costs will increase with the change; it still could be less profitable over time after change on a marginal basis.

Logical proof: if we accept the negation of (B), then consumer purchases will not increase sufficiently to increase profits. That fact would highly damage the argument, so (B) itself, indeed, supports the argument. The correct answer is (B).

The great thing about B is that it touches both sides of the coin, revenues and costs, and even provides us with the final outcome - additional revenues will be greater than additional costs. Couldn't be more obvious, although some other statements would also be tempting (D), but only in the absence of B.

Best,
Jay

This almost sounded like resolve the paradox question

The paradox is that retailer claims improved profitability with seven day delivery whereas in reality if you operate within narrower timelines (less days), you save on shipment costs (since more goods are delivered in lesser trips, hence more volumes per dollar of cost).

B resolves this paradox by saying that offering 7 day delivery aka - faster times - would drive consumer sentiment, leading to more purchases (revenue) that would offset the loss of savings from 6 day delivery schedule.

No other choice strengthens the argument by resolving this paradox.

ravigupta2912
Does not Option D also work as a strenghtener? New customers would come in post the implementation of this plan. Meaning higher revenues. Thus, higher profits.

(I wish Daagh was with us)

Hello, sure if B was not present, D would have been the answer since it offers a scenario where atleast revenues are increasing. But since we have B, which gives info on both revenue and costs, we got to go with B.

B and D are both strengtheners, sure.

Posted from my mobile device

ravigupta2912

Due to the language of the question stem, it took me more than 90 seconds to understand completely what it wants to convey, is this question a true representation of what comes in actual GMAT?