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# Sales of telephones have increased dramatically over the

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Manager
Joined: 31 Aug 2011
Posts: 224

Kudos [?]: 255 [1], given: 56

Sales of telephones have increased dramatically over the [#permalink]

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24 Aug 2012, 03:20
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55% (hard)

Question Stats:

56% (01:13) correct 44% (01:09) wrong based on 304 sessions

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Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.
Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?
(A) Although it sells all of the telephones that it produces, Mammoth Industries’ share of all telephone sales has declined over the last year.
(B) Mammoth Industries’ average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industries’ telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industries’ telephone is one of three brands of telephone that have together accounted for the bulk of the last year’s increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries’ telephones have fallen in the last year.
[Reveal] Spoiler: OA

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Intern
Joined: 21 Aug 2012
Posts: 26

Kudos [?]: 7 [1], given: 4

Re: Sales of telephones have increased dramatically [#permalink]

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24 Aug 2012, 03:48
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PUNEETSCHDV wrote:
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.
Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?
(A) Although it sells all of the telephones that it produces, Mammoth Industries’ share of all telephone sales has declined over the last year.
(B) Mammoth Industries’ average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industries’ telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industries’ telephone is one of three brands of telephone that have together accounted for the bulk of the last year’s increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries’ telephones have fallen in the last year.

I was confused b/w A and E as both of them suggest that there was a decline in sales. But option A talks about decline in "share of all telephone sales" which is relative to sales of other companies while option E clearly states that sales have declined in last year which means that company needs to change its stratergy for increasing the sales.
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Manager
Status: folding sleeves up
Joined: 26 Apr 2013
Posts: 155

Kudos [?]: 137 [0], given: 39

Location: India
Concentration: Finance, Strategy
GMAT 1: 530 Q39 V23
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GPA: 3.5
WE: Consulting (Computer Hardware)
Re: Sales of telephones have increased dramatically over the [#permalink]

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26 Jan 2014, 13:06
Any convincing reason for keeping out C as possible choice?

Kudos [?]: 137 [0], given: 39

Intern
Status: Student
Joined: 06 Oct 2013
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Location: Germany
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Re: Sales of telephones have increased dramatically over the [#permalink]

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26 Jan 2014, 14:45
email2vm wrote:
Any convincing reason for keeping out C as possible choice?

I guess it is not important under which name the people know the phone. Either the buy it or they don't.
We have to find a reason why they won't buy it as often as expected.
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B.Sc., International Production Engineering and Management
M.Sc. mult., European Master in Management Candidate

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Senior Manager
Joined: 04 May 2013
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Re: Sales of telephones have increased dramatically over the [#permalink]

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26 Jan 2014, 19:31
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1. We have to find what provides most support for the view that [color=#0000ff]Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?

2. The plan is that we will increase production and continue advertising.....[/color]

BUT IF THE PRODUCT IS NOT PREFERRED BY THE MASSES.......PRODUCTION CANT INCREASE SALES.......

(E) SAYS THAT EVEN IF RATES DECREASED, THE SALE OF THE Mammoth Industries TELEPHONES DECREASED......HENCE ITS NOT A PREFERRED PRODUCT......HENCE MORE PRODUCTION AND ADVERTISEMENT CANT MAKE A DIFFERENCE........CORRECT ANSWER................

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Intern
Joined: 30 Nov 2013
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Re: Sales of telephones have increased dramatically over the [#permalink]

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29 Jan 2014, 05:24
email2vm wrote:
Any convincing reason for keeping out C as possible choice?

yes , it is not good enough reason to say that Sales will decline, if people cannot distinguish between brands A,B and C but anyways end up buying C then it does not really matter if they can distinguish brand C or not because anyways they are buying it (result whether they distinguish or not is same) !! Hope it is not too confusing.

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Current Student
Joined: 20 Jan 2014
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Location: India
Concentration: Technology, Marketing
Re: Sales of telephones have increased dramatically over the [#permalink]

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29 Sep 2014, 08:58
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Check a very good explanation here:
http://www.beatthegmat.com/mba/2011/04/ ... en-problem
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Re: Sales of telephones have increased dramatically over the [#permalink]

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03 May 2015, 16:39

Kudos [?]: 17007 [0], given: 1962

Re: Sales of telephones have increased dramatically over the   [#permalink] 03 May 2015, 16:39
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