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09 Aug 2021, 08:29
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
68% (02:07) correct
32%
(02:14)
wrong
based on 302
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History
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Time
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Not Attempted Yet
Recently, efficiency experts at a discount mega-store decided to increase the store’s profits by reducing waste and increasing efficiency in the stores. The first action has been to require manufacturers of detergents to eliminate as much water as possible from their formulas and package their products in concentrated form. The store executives estimate that this plan will reduce the cost of packaging material, free up shelf space, and permit more dramatic displays of merchandise.
Which of the following, if true, would most support the plan of the efficiency experts?
A. The packaging industry has experienced such a sharp downturn in demand for polystyrene, a key ingredient used in molding plastic containers, that it has been forced to lay off 13 percent of employees in one factory alone.
B. The water used in the manufacture of detergents and other cleaning products is purified at the same water-treatment plants that purify water used in soft drinks and juice boxes sold in public schools.
C. Detergent manufacturers estimate that smaller containers will lower the wholesale price of laundry products by 7 percent next year and by 11 percent the following year.
D. By increasing the number of hours that employees work and hiring fewer new employees, discount stores have been able to reduce payroll taxes and the cost of health benefits, a reduction that has saved the company hundreds of thousands of dollars this year.
E. By increasing the number of items on display shelves and the attractiveness of the presentations, discount stores hope to entice shoppers to spend more per shopping trip.
Which of the following, if true, would most support the plan of the efficiency experts?
A. The packaging industry has experienced such a sharp downturn in demand for polystyrene, a key ingredient used in molding plastic containers, that it has been forced to lay off 13 percent of employees in one factory alone.
B. The water used in the manufacture of detergents and other cleaning products is purified at the same water-treatment plants that purify water used in soft drinks and juice boxes sold in public schools.
C. Detergent manufacturers estimate that smaller containers will lower the wholesale price of laundry products by 7 percent next year and by 11 percent the following year.
D. By increasing the number of hours that employees work and hiring fewer new employees, discount stores have been able to reduce payroll taxes and the cost of health benefits, a reduction that has saved the company hundreds of thousands of dollars this year.
E. By increasing the number of items on display shelves and the attractiveness of the presentations, discount stores hope to entice shoppers to spend more per shopping trip.
OE
Answer is E
The increased number of items and the improved presentation will logically result in increased sales and increased profits.
Choices A and B contain irrelevant information.
Choice C may lower the wholesale price, but there is no necessary conclusion that this will result in more profit, especially if this lower price is passed on to consumers
Choice D The employee changes may increase profits, but not as a direct result of the new plan.
Answer is E
The increased number of items and the improved presentation will logically result in increased sales and increased profits.
Choices A and B contain irrelevant information.
Choice C may lower the wholesale price, but there is no necessary conclusion that this will result in more profit, especially if this lower price is passed on to consumers
Choice D The employee changes may increase profits, but not as a direct result of the new plan.
09 Aug 2021, 08:57
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SalahT
What is the source? If the source says the answer is E here, then I'd suggest finding better materials to work from. Answers A, B and D are clearly irrelevant. Answer C isn't a great answer, but if the plan will lead to lower expenses for the store, then the plan will increase the store's profits provided revenue stays constant (there's no basis to assume the savings will be passed on to the consumer; we're told nothing about how or if the retail price will change). But C is a much better answer than E, which just says "the stores hope the plan will work". Unless you believe in the power of positive thinking, it really doesn't matter what the stores "hope". If I planned to open an airborne car lot that sold cars suspended from hot air balloons floating over a city, my plan doesn't become more likely to succeed because "I hope the attractive presentation of the levitating cars will be enticing to car buyers". My plan will work or it won't based on how good the plan is, regardless of what I "hope" is true. Now, answer E would become a good answer if it provided evidence that the new displays would increase sales, but as written, it's logically worthless, so C is the only justifiable answer.
