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apoorv601
Joined: 21 May 2015
Last visit: 27 Nov 2017
Posts: 197
Given Kudos: 57
Concentration: Operations, Strategy
Schools: MIT-LGO '18 Ross '18 Tepper '18 Krannert '18 Fisher '18 Kelley '18 Scheller '18 Smeal Penn'18 ISB '17 W. P. Carey Arizona State '18
GMAT 1: 750 Q50 V41
Schools: MIT-LGO '18 Ross '18 Tepper '18 Krannert '18 Fisher '18 Kelley '18 Scheller '18 Smeal Penn'18 ISB '17 W. P. Carey Arizona State '18
GMAT 1: 750 Q50 V41
Posts: 197
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
80% (01:23) correct
20%
(01:43)
wrong
based on 1126
sessions
History
Date
Time
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Not Attempted Yet
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.
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.
03 Jun 2015, 02:52
Kudos
Bookmarks
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
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
10 Aug 2015, 03:34
Kudos
Bookmarks
OptimusPrepJanielle
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.
