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# The owners of a book store and a nearby coffee shop have decided to co

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Manager
Joined: 21 May 2015
Posts: 210
Concentration: Operations, Strategy
GMAT 1: 750 Q50 V41
The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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Updated on: 11 Mar 2019, 08:38
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15% (low)

Question Stats:

79% (01:25) correct 21% (01:41) wrong based on 550 sessions

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The owners of a book store and a nearby coffee shop have decided to combine their businesses. Both owners believe that this merger will increase the number of customers and therefore the gross revenue, because customers who come for one reason may also decide to purchase something else.

Which of the following, if true, most weakens the owners' conclusion that a merger will increase revenue?

(A) Books and drinks can both be considered impulse purchases; often, they are purchased by customers without forethought.

(B) Profit margins at a coffee shop are generally significantly higher than profit margins at a book store.

(C) People who are able to read the first chapter of a book before buying are more likely to decide to buy the book.

(D) A large majority of the book store's current customer base already frequents the coffee shop.

(E) A combination book store and coffee shop that opened in a neighboring city last year has already earned higher than expected profits.

_________________
Apoorv

I realize that i cannot change the world....But i can play a part

Originally posted by apoorv601 on 02 Jun 2015, 20:52.
Last edited by Bunuel on 11 Mar 2019, 08:38, edited 2 times in total.
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Joined: 06 Nov 2014
Posts: 1856
Re: The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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03 Jun 2015, 01:52
The owners of a book store and a nearby coffee shop have decided to combine their businesses. Both owners believe that this merger will increase the number of customers and therefore the gross revenue, because customers who come for one reason may also decide to purchase something else.

Which of the following, if true, most weakens the owners' conclusion that a merger will increase revenue?

(A) Books and drinks can both be considered impulse purchases; often, they are purchased by customers without forethought.
The type of purchase is not relevant.

(B) Profit margins at a coffee shop are generally significantly higher than profit margins at a book store.
We're not comparing coffee shop and book store profit margins.

(C) People who are able to read the first chapter of a book before buying are more likely to decide to buy the book.
Out of scope

(D) A large majority of the book store's current customer base already frequentsthe coffee shop.
If they currently share customers there's no reason to believe that joining the two shops would increase profits.

(E) A combination book store and coffee shop that opened in a neighboring city last year has already earned higher than expected profits
could strengthen the argument
Manager
Joined: 27 Aug 2014
Posts: 63
Re: The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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10 Aug 2015, 02:34
1
OptimusPrepJanielle wrote:
The owners of a book store and a nearby coffee shop have decided to combine their businesses. Both owners believe that this merger will increase the number of customers and therefore the gross revenue, because customers who come for one reason may also decide to purchase something else.

Which of the following, if true, most weakens the owners' conclusion that a merger will increase revenue?

(A) Books and drinks can both be considered impulse purchases; often, they are purchased by customers without forethought.
The type of purchase is not relevant.

(B) Profit margins at a coffee shop are generally significantly higher than profit margins at a book store.
We're not comparing coffee shop and book store profit margins.

(C) People who are able to read the first chapter of a book before buying are more likely to decide to buy the book.
Out of scope

(D) A large majority of the book store's current customer base already frequentsthe coffee shop.
If they currently share customers there's no reason to believe that joining the two shops would increase profits.

(E) A combination book store and coffee shop that opened in a neighboring city last year has already earned higher than expected profits
could strengthen the argument

Hi

Have a question on this one. D I feel is not really weakening because even if the increase in revenue is not huge, there still can be a possibility of improvement. I went for C thinking that if the customer is spending less time reading the book, lesser will be the possibiity for him to buy coffee. Please enlighten.
Intern
Joined: 30 Jun 2014
Posts: 31
GPA: 3.6
WE: Operations (Energy and Utilities)
Re: The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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19 Aug 2015, 03:07
by merger of the business shop owners think that the customers of one store will make the purchase in the other one too. thereby increasing the revenue. so, to weaken their conclusion we should select an option which says that they already share the customers.

Option D says so...
Senior Manager
Joined: 29 Jun 2017
Posts: 411
GPA: 4
WE: Engineering (Transportation)
Re: The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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13 Aug 2017, 10:58
1
1
Clearly Ans is D

A large majority of the book store's current customer base already frequents the coffee shop.
It means there is no reason for the merger and they may not be able to increase the customers... hence weakens.
Intern
Joined: 23 Oct 2013
Posts: 17
Re: The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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13 Aug 2017, 12:02
D is the answer. It weakens the conclusion.

Sent from my Lenovo A7020a48 using GMAT Club Forum mobile app
Intern
Joined: 18 Jan 2017
Posts: 26
Re: The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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03 Dec 2017, 20:45
apoorv601 wrote:
The owners of a book store and a nearby coffee shop have decided to combine their businesses. Both owners believe that this merger will increase the number of customers and therefore the gross revenue, because customers who come for one reason may also decide to purchase something else.

Which of the following, if true, most weakens the owners' conclusion that a merger will increase revenue?

(A) Books and drinks can both be considered impulse purchases; often, they are purchased by customers without forethought.
(B) Profit margins at a coffee shop are generally significantly higher than profit margins at a book store.
(C) People who are able to read the first chapter of a book before buying are more likely to decide to buy the book.
(D) A large majority of the book store's current customer base already frequents the coffee shop.
(E) A combination book store and coffee shop that opened in a neighboring city last year has already earned higher than expected profits.

Summary: bookstore and coffee shop are going to combine their businesses with the belief that this merger will increase the number of customers and therefore increase revenue since customers who come for one reason might purchase something else.
We are looking for an answer that would mean revenue will not increase.

(A) Books and drinks can both be considered impulse purchases; often, they are purchased by customers without forethought.
eliminate- this isn't relevant to why revenue will or will not increase
(B) Profit margins at a coffee shop are generally significantly higher than profit margins at a book store.
eliminate- the statement is comparing the bookstore to coffeeshop profit margins
(C) People who are able to read the first chapter of a book before buying are more likely to decide to buy the book.
eliminate- out of scope
(D) A large majority of the book store's current customer base already frequents the coffee shop.
Keep- this gives a reason why revenue will not increase with the merger of these two businesses.
(E) A combination book store and coffee shop that opened in a neighboring city last year has already earned higher than expected profits
eliminate-this strengthens the argument rather than weakens it.
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Re: The owners of a book store and a nearby coffee shop have decided to co  [#permalink]

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05 Jul 2020, 22:48
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Re: The owners of a book store and a nearby coffee shop have decided to co   [#permalink] 05 Jul 2020, 22:48