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Sales of telephones have increased dramatically over the

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

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05 Apr 2005, 20:47
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16. 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 Industriesâ€™ share of all telephone sales has declined over the last year.
(B) Mammoth Industriesâ€™ average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industriesâ€™ telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industriesâ€™ telephone is one of three brands of telephone that have together accounted for the bulk of the last yearâ€™s increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industriesâ€™ telephones have fallen in the last year.

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

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05 Jul 2012, 10:52
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16. 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 Industriesâ€™ share of all telephone sales has declined over the last year.

This does not weaken the argument. In fact, Mammoth sold all of its phones. By increasing production it will in all likelihood sell the extra phones.

(B) Mammoth Industriesâ€™ average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.

Not quite sure how this relates to the argument. Telephones awaiting shipment and telephones sold do not fall into the same category.

(C) Advertising has made the brand name of Mammoth Industriesâ€™ telephones widely known, but few consumers know that Mammoth Industries owns this brand.

People are buying the phone. That is the important part. Whether these people know that Mammoth owns the brand is not important to sales.

(D) Mammoth Industriesâ€™ telephone is one of three brands of telephone that have together accounted for the bulk of the last yearâ€™s increase in sales.

That's great - looks like mammoth is doing well, and will continue to do well by expanding its production.

(E) Despite a slight decline in the retail price, sales of Mammoth Industriesâ€™ telephones have fallen in the last year.

Hmm...suddenly things do not look so rosy for Mammoth. The rest of the market did well, yet Mammoth phones did poorly. Thus, one can't base market trends on Mammoth's phones sales. Sure the market may continue to do well, but that does not imply Mammoth will be able to take advantage of a surging market.
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02 Nov 2007, 13:41
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First I went with C also. But if you carefully examine you can see that "while continuing its already very extensive advertising of this product" that means advertising has no bearing on the sale of the product. However, E shows that even after a reduce in price the item did not sell, so how can they expect to sell it now since the product is not undergoing any improvement in the phone. Hope this helps.

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05 Apr 2005, 23:18
Will go with E
if mammoth industries had a decline in the sale of telephones even after decreasing the price, then more production will not make sense.

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06 Apr 2005, 05:32
E i think
C to me seems out of scope. Like who cares if they are known or not, increased sales is the objective here

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06 Apr 2005, 06:32
OA is E.

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02 Nov 2007, 09:09
I choose C but OA is E

Could any one explain why E is a better choice than C

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

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05 Jul 2012, 01:02
problems with the incorrect choices:

A: MI's share of all telephone sales has declined, but did not mean that their number of sales has declined
B: this actually strengthens the argument, because it implies that MI telephones are selling fast
C: kinda out of scope
D: again, strengthens the argument instead of weakening it
E: correct, because it basically states that MI telephone sales have declined. So even if MI manufactures more phones, these will not sell well

hope that helps

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

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30 Dec 2013, 23:59
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Re: Sales of telephones have increased dramatically over the [#permalink]

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31 Dec 2013, 06:14
GOOD QUESTION !

16. 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.

if the overall sales of telephones have increased, it does not mean that Mammoth Industries telephone sales also increased....
Now if Mammoth Industries increases production of a brand the sale of which is declining..Mammoth Industries will not gain by increasing production of same....[color=#00a651]HENCE "E " IS CORRECT....

(A) Although it sells all of the telephones that it produces, Mammoth Industriesâ€™ share of all telephone sales has declined over the last year. OVERALL PRODUCTION AND SALE MAY HAVE INCREASED....BUT THAT DOES'NT BOTHER PRODUCTION AND SALE OF Mammoth Industries... INCORRECT
(B) Mammoth Industriesâ€™ average inventory of telephones awaiting shipment to retailers has declined slightly over the last year. ... STRENGTHENER...INCORRECT
(C) Advertising has made the brand name of Mammoth Industriesâ€™ telephones widely known, but few consumers know that Mammoth Industries owns this brand....HOWEVER MORE PRODUCTION COULD ALSO HAVE LED TO MORE SALE...NOT A WEAKENER... INCORRECT.
(D) Mammoth Industriesâ€™ telephone is one of three brands of telephone that have together accounted for the bulk of the last yearâ€™s increase in sales. DOES NOT INDICATE INCREASE IN PRODUCTION WILL INCREASE IN SALE OR NOT...
(E) Despite a slight decline in the retail price, sales of Mammoth Industriesâ€™ telephones have fallen in the last year..... correct

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

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28 Mar 2015, 13:05
Hello from the GMAT Club VerbalBot!

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

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08 Sep 2016, 10:41
Hello from the GMAT Club VerbalBot!

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Re: Sales of telephones have increased dramatically over the   [#permalink] 08 Sep 2016, 10:41
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