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The Maxilux car company's design for its new luxury model,

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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 09 Nov 2015, 11:35
Isnt A worthy enough for discussion
Infact I found A more closer answer than B

And D on the other side talks about generic terms tires can be part of the worn out stuff

Experts please share your views on this

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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 05 Apr 2016, 20:19
rjacobsMGMAT wrote:
(D). Profit = Revenue - Cost. The premises show that revenue from Maxilux will equal cost. So to strengthen the argument, we need additional revenue from elsewhere. (B) is close because it generates additional revenue, but that revenue is also from Maxilux so the revenue will most likely not exceed the cost here either. (D) is the only answer choice that adds the kind of outside revenue stream we want.



Can someone please state the conclusion and premise and identify whether the option D fills the gap between conclusion and premise as this strengthen the argument?

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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 08 Aug 2016, 10:27
Hi ,

I find choice D as less of a strengthener as we are not given whether Rubco will sell the replacement tyres at a higher price directly to consumers. If they sell the replacements to Maxilux directly , the profit will be approx zero as stated earlier.
Choice C in my opinion will cut down the Logistical and Transportation cost and help in increasing profits. Thus it makes the Rubco executives' claim more believable.

Experts , Any thoughts on this ?

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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 08 Aug 2016, 10:32
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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 16 Aug 2016, 17:51
russ9 wrote:
Can someone shed some light on why C is wrong?

If the facilities are located closer, doesn't that mean that it's reduced cost and therefore higher profits?


Because the analyst said that M's purchase price is just cover cost (which is the cost of the materials to be used to make the tires). So R will be unprofitable if it incurs any other cost. If the facilities are located close, R still need transportation cost anyhow. (C) makes R "less unprofitable", it does not make R "become profitable".

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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 26 Jul 2017, 10:03
Merged topics. Please, search before posting questions!
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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 25 Sep 2017, 08:58
Thanks.. But why not A.. We have no clue about a spare tire, perhaps the spare tire causes additional revenue stream?

rjacobsMGMAT wrote:
(D). Profit = Revenue - Cost. The premises show that revenue from Maxilux will equal cost. So to strengthen the argument, we need additional revenue from elsewhere. (B) is close because it generates additional revenue, but that revenue is also from Maxilux so the revenue will most likely not exceed the cost here either. (D) is the only answer choice that adds the kind of outside revenue stream we want.

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The Maxilux car company's design for its new luxury model, [#permalink]

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New post 07 Jan 2018, 03:29
Hi GMATNinja GMATNinjaTwo


Can you suggest if (A) weakens the claim:
If Rubco had to supply additional spare tires their profits will eventually get down.
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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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New post 08 Jan 2018, 22:32
adkikani wrote:
Hi GMATNinja GMATNinjaTwo


Can you suggest if (A) weakens the claim:
If Rubco had to supply additional spare tires their profits will eventually get down.

Quote:
(A) In any Maxilux model, the spare tire is exactly the same make and model as the tires that are mounted on the wheels.

Based on the wording of choice (A) ("In any Maxilux model, the spare tire...), I think it's safe to infer that the model in question comes with a spare tire. It would be a stretch to assume that the bid did NOT include budget for a spare tire and that Rubco now has to go out and supply additional tires. In other words, if the model needed 5 tires (including a spare), the contract would have included 5 tires.

So choice (A) doesn't really impact the claim. We would have to make some big assumptions to conclude that this is a weakener.

I hope that helps!
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Re: The Maxilux car company's design for its new luxury model,   [#permalink] 08 Jan 2018, 22:32

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