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

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

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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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Originally posted by maybeam on 05 Jul 2012, 09:52.
Last edited by bb on 09 Oct 2018, 14:30, edited 4 times in total.
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Re: Sales of telephones have increased dramatically over the last year. In  [#permalink]

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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 Industries’ 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 Industries’ 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 Industries’ 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 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 - 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 Industries’ 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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Originally posted by ChrisLele on 25 Jul 2012, 22:07.
Last edited by Bunuel on 26 Aug 2018, 04:38, edited 4 times in total.
Edited the question.
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Re: Sales of telephones have increased dramatically over the last year. In  [#permalink]

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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.

Conclusion: Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above
Reasoning: Sales of phone increased. M. increases phone productions. Still, M.I. cannot increase sales only if: the model is outdated; the phones don't work and are returned;prices dropped,etc.

(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 - shell game. Clearly, the total share of the market <> absolute value of sales. If total share gets bigger + but company sales remain flat, then producing phones will hurt. But, if total share increases + company sales increase very litte, producing more phones could increase sales. This always the trap answer: for absolute value answers, trap is percentage; for percentage answers, the trap is absolute value answers.

(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year. Wrong - reverse answer. If times awaiting shipment has decreased, then more phones can be sold. Thus, there can be more 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 - if few customers know of brand, then sales can increase.

(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 - If market is increasing, then more sales can occur.

(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year. Correct - if prices have fallen, then producing more phones will saturate the market, thus accelerating the decline in prices.

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

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New post 25 Jul 2012, 23:05
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maybeam 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.

Quote:
i marked A as the ans.
still not clear why it is the wrong choice

Hi

A is not correct as it doesn't allow us to deduce anything that actually has an effect on the argument. It doesn't even imply that mammoth's sales themselves have actually gone down. it says only that mammoth's share\proportion - of the sales has decreased, but that's not the same as saying that the sales themselves have actually decreased. Hope this clarifies
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Re: Sales of telephones have increased dramatically over the last year. In  [#permalink]

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maybeam 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.

Quote:
i marked A as the ans.
still not clear why it is the wrong choice


The premise says that:-
".....while continuing its already very extensive advertising of this product."

The conclusion says that:-
the company wants to expand the production of its own telephone models BECAUSE "Sales of telephones have increased dramatically over the last year...."

The company could not make large sales despite good advertisement.

(E) suggests that even though the company reduced the price the sales fell down.This means that there is no such shortage of the products but rather the quality is not up to the mark so that people can buy it.
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Re: Sales of telephones have increased dramatically over the last year. In  [#permalink]

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I guess the answer is .

Mammoth Industries plans to expand production of its own model of telephone --- BECAUSE --- Sales of telephones have increased dramatically over the last year and it wants to take advantage of the situation.

We are asked a question as to why they might not be successful in doing so/ why this might not be such a good plan.

(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.
If it sells whatever it produces...this means that they are meeting their targets and so might be the case this time too. Doesn't tell us why this is not a good plan. INCORRECT

(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
If the inventory or stock has declined, it means either the consumption is more or production is less. We are not sure which is he case and hence it doesn't tell us why this is not a good plan. INCORRECT.

(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.
Out of scope. Doesn't tell us why this is not a good plan. INCORRECT.

(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.
If they are producing a brand that accounted for the bulk in sales. This might be a good idea. We are hunting for - why this might not be a good idea. INCORRECT.

(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.
What ??? They were not able to sell despite of decline in retail price. Then this definitely is not a good plan. CORRECT
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Re: Sales of telephones have increased dramatically over the last year. In  [#permalink]

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New post 19 May 2013, 05:06
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Folks,

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

Mammoth sells all its inventory of telephones.However, the SALES FOR TELEPLHONES in the INDUSTRY has risen in a year , but MM Industries' share of ALL TELEPHONES has declined over last year.

Example:

Last year : MM sold 10 and Total Telephones 100 = 10%
This year : MM sold 10 and Total Telephones 200 = 5% Option (A) says this.

Now MM just looked the rise in Total Telephones from 100 to 200,ignoring the FACT that the rise in Total didn't cause rise in SALES for MM Industries, planned to expand the production and increase in advertising.But the fact is that the Total Sales increase caused increase in SALES of some other XYZ industries and not MM industries

So Expanding the production and advertising won't lead to SUCCESS.

Plz Advice

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

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New post 06 Apr 2014, 06:31
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Got this on GMATPrep:

Got this one wrong since I misread the question.

Industry wide increases in sales of telephones over last year.

However, since MI's sales have fallen last year and there was an industry wide increase in sales of telephone, MI sales cannot be increased this year too by the stated plan.
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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?


Plan: Expand production, maintain extensive advertising
We need an answer to prove that PLAN won’t increase sales of MI’s phones


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


- Mammoth has sold all its phones, and according to the prompt, it has expanded production (therefore, more sales & profit, since it was able to sell all)
- Mammoth’s share in telephone sales is irrelevant on whether Mammoth can increase or decrease its sales

(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.- So if Mammoth expands production, inventory will increase, therefore, shipment (sales) will increase

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

(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.
- Last year’s sales is irrelevant
- Mammoth has only increased its sales this year

(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.- Correct answer because we know that expansion of production will not address the issue as the fact that there was a decline in the retail price and consequently a decline in sales suggests that there may be external factors as to why the phones are not selling
- Increasing supply without a corresponding demand will result to declined sales or loss
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New post 03 May 2015, 09:14
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(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.

This a classic trap answer.

Whenever you see %age decrease an immediate thought pattern should occur in your mind that numbers must be increasing somewhere. (GMAT Pattern) Here is how -

1 yr ago -

Let Mammoth Industries' market share be - 55%
Total number of handsets sold be - 100
Number of handsets Mammoth Industries sold - 55 handsets.

Today -

Mammoth Industries' share of all telephone sales has declined over the last year.

Let Mammoth Industries' market share be - 50% (reduced from 55%)
Total number of handsets sold be - 1000
Number of handsets Mammoth Industries sold - 500 handsets.

i.e. Mammoth Industries sold more handsets than last year, even though market share has declined as you can see above. Since we have to destroy this option we increased the market size (one extreme). It is a variable quantity and you should use it to your advantage.

Takeaway - If you have to weaken a %age decrease option/question then immediate find an answer choice that says the total number must have increased somewhere.

Here is another problem using the same concept -

in-the-united-states-of-the-people-who-moved-from-one-state-136004.html
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New post 03 May 2015, 15:37
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the key is the words "in order to take advantage of this increase". these words show the assumptions that are being made.
in particular, the passage assumes that an overall increase in telephone sales, industry-wide, will automatically translate into an increase in sales for mammoth industries.

choice (e) severs this connection completely - it showed that mammoth's sales dropped as the industry-wide sales increased sharply - and so utterly destroys this assumed connection.
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Re: Sales of telephones have increased dramatically over the last year. In  [#permalink]

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New post 21 Nov 2015, 15:55
maybeam 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.

Quote:
i marked A as the ans.
still not clear why it is the wrong choice


Clearly B, C, and D are wrong.

A: take an example to understand why it is wrong:
The year before last year: Industry sold 100 (assume) phones, MI sold 30 phones. --> Market share of MI = 30%
Last year: Industry sold 200 (assume) phones. If market share of MI declined last year --> MI sold less than 60 phones last year (because in the year before last year, MI's market share = 30%, if it sold more than 60 phones, its market share would be at least 30%). Even when MI sold 50 phones, it still increased production compared with the year after last year --> support the plan of MI. --> Wrong.

E: The sale of phones in the industry increased last year (e.g. from 100 phones to 200 phones as previously mentioned). However sales of phone fell (e.g. lower than 30 phones as previously mentioned) even when it reduced phone's unit price. --> clearly no more production should be applied for this or next year --> the original plan cannot increase the sales of phones
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Re: Sales of telephones have increased dramatically over the last year. In  [#permalink]

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New post 28 Apr 2017, 04:49
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A. Market share is out of scope since passage talks about the overall sales volume. It is still possible that market share will be lower than last year however total sales increased.
E. If Mammoth sales dropped last year then we have no adequate precondition for its increase in nearest future, hence it completely shutters the argument and Correct choice.
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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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Sales of telephones have increased dramatically over the last year. In  [#permalink]

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New post 10 Nov 2018, 20:22
[quote="gmatdummy01"]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?


REASON:Did not PRETHINK or STATE THE GOAL clearly.
My approach
Continued increase In Production and Extensive advertising cost will not lead to increased sales.

A.Price of share and sales not related.

B.doesnt help..invetory decline ..to some extent it stengthens..the fact thhat there shuld be increase in PRODUCTION.

C.It doesnt matter whether few people know wh knows the brand as long as the sales are good.

D.Good thing ..but doesnt help.

E.It isstated in tye passage that mammoth was increasing production and exptensive advertising from last year and now the plan is to continue the same.But if inspite of this sales declined last year--then now if it increases production --IIt wont help. So this completly fits our stated GOAL.
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Sales of telephones have increased dramatically over the last year. In &nbs [#permalink] 10 Nov 2018, 20:22
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