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Sales of telephones have increased dramatically over the last year. In

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Re: Sales of telephones have increased dramatically over the last year. In [#permalink]

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New post 23 Aug 2017, 04:45
The sale has reduced despite advertisement last year. This year they hope to sell more by producing more and advertising more but this is least probable given the facts of last year

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Re: Sales of telephones have increased dramatically over the last year. In [#permalink]

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New post 05 Oct 2017, 04:33
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I have a slightly different approach, check this out:

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.

Conclusion: Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above

Very important to understand: Sales of telephones have increased in the economy generally! How do I show that Mammoth Industrie's plan will not work out? Well, if we have clear evidence/observation what has happened last year to Mammoth Industrie.


(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year. Wrong - share is not important as Mammoth still could increase its sales (Absolute vs Relative)

(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year. Wrong - Irrelevant because how does it affect its sales? No clear link to the increase of sales

(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand. Wrong - clearly, irrelevant

(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. Wrong - clearly, irrelevant

(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year. Correct - Must be taken as true, so if sales (direct link!!) have fallen last year + Mammoth Industrie keeps producing + advertising the same model -> Why should there be a change in their sales?

Therefore E) is the correct answer.

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Re: Sales of telephones have increased dramatically over the last year. In   [#permalink] 05 Oct 2017, 04:33

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