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655-705 (Hard)|   Weaken|                  
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KarishmaB
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Sales of telephones have increased dramatically over the last year. In 09 Sep 2023, 09:55
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rickyric395
KarishmaB, GMATNinja , AjiteshArun, in support of B, if inventory has decreased slightly in light that sales of telephones is on the rise. Doesn't it mean that it may be possible that MI's phone sale is not good and increase in production won't do any good? I mean since phone sales is on rise and consequently inventory should have decreased rapidly, then increase in production would have made sense. But it not this case as stated in B
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Though Ajitesh has already answered the question in his usual brilliant manner, there is one thing I would like to point out -

Option (B) says "average inventory awaiting shipment to retailers" has declined slightly.
Looking at that, we can say nothing about the change in sales of the company. It depends on a 100 factors such as when the production process completed, when the company raised the invoice, when was that cleared, when did the retailer request for the shipment, what is the schedule of the courier running the shipment etc. Something as simple as the courier running one extra pickup per day could decrease the "average inventory awaiting shipment to retailers" while the sales may have stayed the same.
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Sales of telephones have increased dramatically over the last year. In 30 Mar 2026, 06:43
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over last year, sales of telephone has increased drastically.
MI wants to take advantage of this.
plan - expand the production of its own model of telephone while keeping extensive ad of product continue.

B,C,D are easy elimination.

A okay so even if their share of all telephone has decreased but they are able to sell all phones so they have increased their sales. its just overall sales in the market has not increased for the company.

E if their sales have fallen in last year despite slight decline in retail price then there is something wrong with the phone. so expanding production wont do much better. rather they will have more cash burn. so this weakens it

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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.




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Sales of telephones have increased dramatically over the last year. In 13 Aug 2026, 10:05
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Similar Question - https://gmatclub.com/forum/v39-440595.html
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Sales of telephones have increased dramatically over the last year. In 14 Aug 2026, 04:50
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Premise : - More people are buying telephones---> Mammoth Industries wants to use this advantage to increase it's telephone sales too ---->
Mammoth Industries increases production of their own model, while continuing its already very extensive advertising of this product.

Question :- Which option will support that their plan to increase their sales will fail ?

(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.

Share percentage decline could also be caused if other companies sold more phones. Therefore, this option doesn’t provide any evidence that their current plan will fail --- Eliminate.

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

That's bad business practice but it doesn't prove that they can't sell more telephones this year --- Eliminate

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

And why does this matter, even if people don't know who owns this brand. This option is Irrelevant --- Eliminate

(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.

That's great! but does this option tells us that whether what will happen this year. No! --- Eliminate

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

Right, we now have a reason to doubt their plan. Even after lowering their price, sales further declined and producing more of the product didn’t directly translate into increased sales. --- Correct
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