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Printwell’s Ink Jet Division manufactures ink-jet printers and the ink

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Printwell’s Ink Jet Division manufactures ink-jet printers and the ink  [#permalink]

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New post Updated on: 13 Aug 2017, 06:53
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Printwell’s Ink Jet Division manufactures ink-jet printers and the ink cartridges they use. Sales of its ink-jet printers have increased. Monthly revenues from those sales, however, have not increased, because competition has forced Printwell to cut the prices of its printers. Unfortunately, Printwell has been unable to bring down the cost of manufacturing a printer. Thus, despite the increase in printer sales, the Ink Jet Division must be providing the company with much smaller than it used to.

Which of the following, if true, most seriously weakens the argument?

A. Ink-jet printers in regular use frequently need new ink cartridges, and Printwell’s printers only accept Printwell’s ink cartridges.
B. Unlike some competing companies, Printwell sells all of its printers through retailers, and these retailers’ costs account for a sizable proportion of the printers’ ultimate retail price.
C. Some printer manufacturers have been forced to reduce the sale price of their ink-jet printers even more than Printwell has.
D. In the past year, no competing manufacturer of ink-jet printers has had as great an increase in unit sales of printers as Printwell has.
E. In the past year, sales of Printwell’s ink-jet printers have increased more than sales of any other type of printer made by Printwell.

Originally posted by Vyshak on 13 Aug 2017, 05:33.
Last edited by broall on 13 Aug 2017, 06:53, edited 1 time in total.
Merged topic. Please search before posting question.
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Re: Printwell’s Ink Jet Division manufactures ink-jet printers and the ink  [#permalink]

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New post 03 Aug 2019, 18:21
The argument is that the Ink Jet division is contributing less to the company's profits than it used to despite the increase in printer sales.

This is supported by the fact that monthly revenues from the sale of ink-jet printers has not increased since competition has forced Printwell to cut the sale prices of printers, and Printwell has been unable to bring down the cost of manufacturing.

We are asked to weaken the argument

A - is correct because even though the sales price of printers has decreased the inkjets frequently require bespoke cartridges, so the most probably indicator is that this would lead to more profit at least on the ink itself, so it would run counter to the argument that the inkjet division actually contributes less to profit.
B - is incorrect because it doesn't necessarily weaken the argument. If prices are reduced and retailer costs are added then relatively the prices still come down.
C is incorrect because it provides information on what the competitors are doing. If Competitors reduce their prices then it's hard to see how this would weaken the argument that profits are down for this division.
D is incorrect - competition is irrelevant here and we are talking relatively.
E is incorrect - if the sale of ink jets are more than the sales of other types of printers then at first it seems as if this would mean inkjet contributes more to profits, but we are told that sales prices have been reduced while costs remain the same, so comparatively the argument still holds true.
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Re: Printwell’s Ink Jet Division manufactures ink-jet printers and the ink   [#permalink] 03 Aug 2019, 18:21

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