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# RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic

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RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 09:27
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Difficulty:

25% (medium)

Question Stats:

76% (01:58) correct 24% (02:04) wrong based on 509 sessions

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Algorpal Industries produces high quality pneumatic filters. For years, they have primarily served manufacturers of domestic agricultural equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Algorpal could expand into pneumatic filters for biomedical research technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Algorpal’s profits.

Which of the following would be the most useful to establish in evaluating the consultant’s recommendation?

A. Whether other markets, such as food processing and food service, would offer greater opportunities for potential profits.

B. Whether the number of biomedical devices at any single research center is greater than the number of pieces of equipment requiring filters on a single farm.

C. How the ambient indoor air quality in a biomedical research center compares to the typical outdoor air quality in an agricultural zone.

D. Whether the competition in the biomedical technology sector would allow for profits similar to what those in the agricultural sector had been

E. Whether countries with expanding agricultural sectors would use farm equipment similarly to the domestic equipment current served by Algorpal.

Day 23 Question of the Verbal Contest: Race Against the GMAT Club Timer

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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 09:44
1
IMO it is D.

A) This option talks about other markets. out of context
B) this is again out of context
C) It wont help in anyway
D) this asks us a reason to ponder whether, if the company makes that changes would it be abler to beat up/equal the profit the company had in the past.
E) out of context.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 09:56
1
souvik101990 wrote:

Algorpal Industries produces high quality pneumatic filters. For years, they have primarily served manufacturers of domestic agricultural equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Algorpal could expand into pneumatic filters for biomedical research technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Algorpal’s profits.

Which of the following would be the most useful to establish in evaluating the consultant’s recommendation?

A. Whether other markets, such as food processing and food service, would offer greater opportunities for potential profits.

B. Whether the number of biomedical devices at any single research center is greater than the number of pieces of equipment requiring filters on a single farm.

C. How the ambient indoor air quality in a biomedical research center compares to the typical outdoor air quality in an agricultural zone.

D. Whether the competition in the biomedical technology sector would allow for profits similar to what those in the agricultural sector had been

E. Whether countries with expanding agricultural sectors would use farm equipment similarly to the domestic equipment current served by Algorpal.

IMO option D.
A, C and E - don't talk about profits
B - depends on the number of devices...what if biomedical devices are less but cost of each filter for them is more....then it could be profitable for Alg. Industry and vice versa also holds
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 10:05
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Easy one again. But its easy ones like these which make you learn more than the toughies.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 10:09
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Quote:
Algorpal Industries produces high quality pneumatic filters. For years, they have primarily served manufacturers of domestic agricultural equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Algorpal could expand into pneumatic filters for biomedical research technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Algorpal’s profits.

Which of the following would be the most useful to establish in evaluating the consultant’s recommendation?

A. Whether other markets, such as food processing and food service, would offer greater opportunities for potential profits.

B. Whether the number of biomedical devices at any single research center is greater than the number of pieces of equipment requiring filters on a single farm.

C. How the ambient indoor air quality in a biomedical research center compares to the typical outdoor air quality in an agricultural zone.

D. Whether the competition in the biomedical technology sector would allow for profits similar to what those in the agricultural sector had been

E. Whether countries with expanding agricultural sectors would use farm equipment similarly to the domestic equipment current served by Algorpal.

A consultant recommendation:
1. Algorpal could expand into pneumatic filters for biomedical research technology, a rapidly expanding market.
2. The consultant argued that this single change could reverse a ten-year decline in Algorpal’s profits.

Option A: Information related to other markets is completely out of scope.

Option B: Whether the number of biomedical devices is greater or less than the number of pieces of equipment requiring filters on a single farm is irrelevant to the profits as claimed by the consultant.

Option C: Same as of B. This can be true but Air quality will not give any info regarding the profits.

Option D: If there is a stiff competition then it may prove to be difficult to gain profits and if the competition is less compared to agricultural sector then firm may gain profits. This info is needed to evaluate the argument properly.

Option E: Info regarding other countries is completely out of scope and is not going explain anything.
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RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 10:15
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Algorpal Industries produces high quality pneumatic filters. For years, they have primarily served manufacturers of domestic agricultural equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Algorpal could expand into pneumatic filters for biomedical research technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Algorpal’s profits.

Which of the following would be the most useful to establish in evaluating the consultant’s recommendation?

A. Whether other markets, such as food processing and food service, would offer greater opportunities for potential profits.
- Food processing and food service is not related here.

B. Whether the number of biomedical devices at any single research center is greater than the number of pieces of equipment requiring filters on a single farm.
- not a related comparison. So this is incorrect.

C. How the ambient indoor air quality in a biomedical research center compares to the typical outdoor air quality in an agricultural zone.
- air quality is irrelevant

D. Whether the competition in the biomedical technology sector would allow for profits similar to what those in the agricultural sector had been
- This is surely one factor although not the only one that will actually help evaluate the consultant's recommendation. hence the best choice.

E. Whether countries with expanding agricultural sectors would use farm equipment similarly to the domestic equipment current served by Algorpal.
- this does not support the consultants stand, so this is ruled out.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 10:49
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"Which of the following would be the most useful to establish in evaluating the consultant’s recommendation?"
this part is so tricky to understand...never seen a CR question like hope....
creepers!!!
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 10:56
1
Seems easy one.. Only one option seems to be correct. Done in 1min54sec. Hope I am correct.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 12:33
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It almost seems to easy to be a 700-level question. Could it be tricky somehow?
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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12 Aug 2015, 22:00
1
souvik101990 wrote:

Algorpal Industries produces high quality pneumatic filters. For years, they have primarily served manufacturers of domestic agricultural equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Algorpal could expand into pneumatic filters for biomedical research technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Algorpal’s profits.

Which of the following would be the most useful to establish in evaluating the consultant’s recommendation?

A. Whether other markets, such as food processing and food service, would offer greater opportunities for potential profits.

B. Whether the number of biomedical devices at any single research center is greater than the number of pieces of equipment requiring filters on a single farm.

C. How the ambient indoor air quality in a biomedical research center compares to the typical outdoor air quality in an agricultural zone.

D. Whether the competition in the biomedical technology sector would allow for profits similar to what those in the agricultural sector had been

E. Whether countries with expanding agricultural sectors would use farm equipment similarly to the domestic equipment current served by Algorpal.

Day 23 Question of the Verbal Contest: Race Against the GMAT Club Timer

+1 for D. Seems pretty easy. All other options are either out of scope or irrelevant.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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13 Aug 2015, 00:38
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Between
B and D I chose B
Now I feel correct ans is
OA plz
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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13 Aug 2015, 02:07
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Well, D it is. Pretty straightforward. Hope I did not fall for the trap
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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13 Aug 2015, 05:23
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D it is. The others are easily discarded.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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17 Aug 2015, 16:42
Good question. I was about to pick wrong answer choice but sticking to conclusion helped me pick the correct answer choice.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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17 Sep 2015, 18:40
I was thinking the other way round, as he is out of profits he is changing the field.
So how can he compare this new to the old which is not giving any profits?
Ass soon as I read the question I was with answer D but later I thought for little more time.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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11 Jul 2016, 15:53
understand the question carefully. That is what i say in my head everytime.
This is a trick for everyone.
Here is question has context that the sale to a different industry will reap the revenue lost in the last decade.

This is the assumption and this is what will be the answer in the evaluate

Therefore D is t he answer
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RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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16 Feb 2018, 03:21
souvik101990 wrote:

Algorpal Industries produces high quality pneumatic filters. For years, they have primarily served manufacturers of domestic agricultural equipment, and over time, this market has been decreasing. A consultant recommended that, with a minor modification, Algorpal could expand into pneumatic filters for biomedical research technology, a rapidly expanding market. The consultant argued that this single change could reverse a ten-year decline in Algorpal’s profits.

Which of the following would be the most useful to establish in evaluating the consultant’s recommendation?

A. Whether other markets, such as food processing and food service, would offer greater opportunities for potential profits.

B. Whether the number of biomedical devices at any single research center is greater than the number of pieces of equipment requiring filters on a single farm.

C. How the ambient indoor air quality in a biomedical research center compares to the typical outdoor air quality in an agricultural zone.

D. Whether the competition in the biomedical technology sector would allow for profits similar to what those in the agricultural sector had been

E. Whether countries with expanding agricultural sectors would use farm equipment similarly to the domestic equipment current served by Algorpal.

Day 23 Question of the Verbal Contest: Race Against the GMAT Club Timer

Consultant's plan: Change the design of pneumatic filters currently used as domestic agricultural equipment so that they can be used in biomedical research technology.
Goal: This plan could reverse a ten-year decline in the company's profits.

Key thing to be evaluated for the plan to succeed and achieve its goal is whether the company will be really be able to make profits. Even if the plan is well executed, are there any other external factors within the market that can hinder the growth of the company with its new plan?
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic  [#permalink]

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03 Aug 2018, 23:23

Official Explanation

The core of the consultant's argument is: branching into this new sector will bring new profits, profits to replace what was lost in the agriculture sector. The credited answer is (D): whether branching into this new biomedical sector indeed will replace the former profits.

Choice (A) raises a different question, profits from a third sector not mentioned. This might offer yet another alternative, but it's not directly relevant to the question: will entering the biomedical sector replace former profits?

Choice (B) might appear to be relevant to the question of profits, but suppose we knew the precise answer to this --- suppose we knew, say, that each farm had five machines and each research center had three machines. Then what? How many farms overall are there? How many biomedical research centers overall are there? We don't know, so we can't evaluate the question of total profits.

Choice (C) is an interesting distractor. Whatever a pneumatic filter may filter, it probably has something to do with air. Are these filters filtering ambient air in the room, or are they filtering some particular internal channel within the machine? We don't know, and even if we did, we would still be a long way off from deciding anything about profits.

Choice (E), like Choice (A), offers another option, another avenue that Algorpal might decide to follow instead of, or in addition to, the consultant's recommendation. The task here, though, quite specifically, is to evaluate the consultant's recommendation. How successful another avenue would be tells us nothing about how successful the plan recommended by the consultant would be.
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Re: RAGCT 2015 Day 23: Algorpal Industries produces high quality pneumatic &nbs [#permalink] 03 Aug 2018, 23:23
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