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Source: MGMAT CR Adam will spend $4,000 to rent a booth at

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Re: Source: MGMAT CR Adam will spend $4,000 to rent a booth at [#permalink]

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New post 28 Sep 2016, 03:30
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Re: Source: MGMAT CR Adam will spend $4,000 to rent a booth at [#permalink]

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New post 15 Nov 2016, 10:11
I agree with nitin 6305..I actually thought of the weakener on the exact same lines and so was not sure why C is wrong and B is correct.

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Re: Source: MGMAT CR Adam will spend $4,000 to rent a booth at [#permalink]

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New post 27 Aug 2017, 19:46
nitin6305 wrote:
Pretty much agree with the explanation given for Option B, but do not understand why is Option C ruled out. This Selling Price, which ADAM has decided is based on his poor understanding of the concept of average. He came to the number 400 because he feels he ll be able to garner 400 customers as that is the average and thus chose a price of 10 USD for each sandwich. But what if he is able to garner only 300 customers, or even less? He will be not be able to cover his costs then. Answer choice C exposes this gap of his understanding. Doesn't it weaken (not destry, just casts a doubt) the conclusion?


Exactly my thoughts.

Does Weaken correct answer needs to just "weaken" -- which is a lower bar -- or it needs to destroy (without doubt) the argument? i thought that in weaken questions, only one of the options would be weakening the argument but here both B or C can potentially weaken.

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Re: Source: MGMAT CR Adam will spend $4,000 to rent a booth at [#permalink]

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New post 28 Aug 2017, 11:07
Adam will spend $4,000 to rent a booth at the town’s annual county fair to promote his new Sandwich Shoppe. In previous years, the average food booth at the fair served 400 customers. Thus, in order to cover his costs, Adam has calculated that he must sell 400 sandwiches for $10 each.

Which of the following statements casts the most doubt on Adam’s chances of breaking even at the county fair?

A. Adam should not limit himself to 400 sandwiches; he should be prepared to sell more. - Irrelevant
B. Adam has not factored in the costs of raw materials or labor in calculating the amount of revenue he needs to generate to break even. - Correct - Adam only factors in rental cost but does not considers any other cost
C. If booths in previous years averaged 400 customers, that means some booths served more than 400 and some served fewer than 400. - Irrelevant
D. Many people prefer other types of food to sandwiches. - Irrelevant
E. If Adam shares his booth, and the cost of the rental, with a complementary business, he will not have to sell as many sandwiches to break even. Irrelevant -

Answer B
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Re: Source: MGMAT CR Adam will spend $4,000 to rent a booth at [#permalink]

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New post 31 Aug 2017, 20:08
BREAK EVEN means recovering the amount spent.
This includes: raw materials+labor+electricity+rent etc
Adam has taken into account only the rent, but he should factor in the other factors as well.
Answer is clearly B.
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Re: Source: MGMAT CR Adam will spend $4,000 to rent a booth at   [#permalink] 31 Aug 2017, 20:08

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