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

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Senior Manager
Joined: 27 Jul 2014
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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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09 Nov 2015, 12:35
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

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

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05 Apr 2016, 21:19
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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08 Aug 2016, 11:27
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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16 Aug 2016, 18:51
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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26 Jul 2017, 11:03
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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25 Sep 2017, 09:58
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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07 Jan 2018, 04:29
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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08 Jan 2018, 23:32
1
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]

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13 Apr 2018, 07:34
The Maxilux car company's design for its new luxury model, the Max 100, included a special design for the tires that was intended to complement the model's image. The winning bid for supplying these tires was submitted by Rubco. Analysts concluded that the bid would only just cover Rubco's costs on the tires, but Rubco executives claim that winning the bid will actually make a profit for the company.

Which of the following, if true, most strongly justifies the claim made by Rubco's executives?

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

(B) Rubco holds exclusive contracts to supply Maxilux with the tires for a number of other models made by Maxilux.

(C) The production facilities for the Max 100 and those for the tires to be supplied by Rubco are located very near each other.

(D) When people who have purchased a carefully designed luxury automobile need to replace a worn part of it, they almost invariably replace it with a part of exactly the same make and type.

(E) When Maxilux awarded the tire contract to Rubco, the only criterion on which Rubco's bid was clearly ahead of its competitors' bids was price.

This is a strengthen the argument question.
Like weaken, strengthen questions also require us to isolate the conclusion. As we will be looking for the answer that makes our belief stronger on the premise-conclusion relationship such as analogies, survey, reports, statistical data etc.
Protect the missing information
a) by keeping any option that fills the gap
b) by eliminating the answer that attacks the missing information

Between B and D, I feel B won't help to justify the conclusion, which says "winning the bid will actually make a profit for the company". This option talks about the contracts to supply Maxilux with the tires for a number of other models made by Maxilux. However, the conclusion is talking about this bid will generate profit.

D does the job. This helps me believe that if I need to replace a worn part of it, I need to invariably replace it with a part of exactly the same make and type. That means I cannot go anywhere else but Rubco.
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Re: The Maxilux car company's design for its new luxury model, [#permalink]

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13 Jun 2018, 03:29
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.

Also to add in the Option B, it says for other models but the Argument talks about profit from Max 100 only.
Re: The Maxilux car company's design for its new luxury model,   [#permalink] 13 Jun 2018, 03:29

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

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