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705-805 Level|   Inference|      
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Bunuel
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The Tulips electronics manufacturer came out with a revamped version 07 Aug 2023, 01:30
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D
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85% (hard)

Question Stats:

47% (02:19) correct 53% (02:10) wrong based on 205 sessions

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The Tulips electronics manufacturer came out with a revamped version of a radio they had once produced. The older model had excellent sound quality. The new version had a more attractive design and was fitted with a display screen. The management department was extremely pleased with the record-high sales figures produced by the new radio although the finance department claimed that the profit earned by the old radio in the same amount of time was higher by two-thirds.

Which of the following inferences is best supported by the statement made above?


(A) The screen fitted to the new radios increased its production cost, resulting in a lower profit.

(B) Although the new model was cheaper to produce, its marketing proved to be very expensive.

(C) The revenues earned by the old model were two-thirds higher than those earned by the new model.

(D) Although it had excellent sound quality, the older model cost Tulips less.

(E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher.


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D
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The Tulips electronics manufacturer came out with a revamped version 08 Aug 2023, 19:10
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The Tulips electronics manufacturer came out with a revamped version of a radio they had once produced. The older model had excellent sound quality. The new version had a more attractive design and was fitted with a display screen. The management department was extremely pleased with the record-high sales figures produced by the new radio although the finance department claimed that the profit earned by the old radio in the same amount of time was higher by two-thirds.

Which of the following inferences is best supported by the statement made above?


(A) The screen fitted to the new radios increased its production cost, resulting in a lower profit.

(B) Although the new model was cheaper to produce, its marketing proved to be very expensive.

(C) The revenues earned by the old model were two-thirds higher than those earned by the new model.

(D) Although it had excellent sound quality, the older model cost Tulips less.

(E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher.

Only competition is b/w A & D
We cant infer that the addditional cost of newer model is because of the screen, therefore D is our Answer.
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The Tulips electronics manufacturer came out with a revamped version 08 Aug 2023, 23:43
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We must assume that the purchase price of both the models was the same amount ? It is not mentioned in the question.
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The Tulips electronics manufacturer came out with a revamped version 09 Aug 2023, 16:27
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The answer is D.

A) can't say whether the screen was expensive. (not mentioned in the passage)

B) Marketing was nowhere mentioned.

C) No figures were mentioned about the revenue, just about the profits (revenue - cost)

D) CORRECT - despite large sales figures (high revenue) of newer model. older model generated more profits, then definitely the cost must have been more for producing the newer model.

E) Could've been right if they were similar costing (but mentioned nowhere).
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The Tulips electronics manufacturer came out with a revamped version 13 Aug 2023, 05:16
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The Tulips electronics manufacturer came out with a revamped version of a radio they had once produced. The older model had excellent sound quality. The new version had a more attractive design and was fitted with a display screen. The management department was extremely pleased with the record-high sales figures produced by the new radio although the finance department claimed that the profit earned by the old radio in the same amount of time was higher by two-thirds.

Which of the following inferences is best supported by the statement made above?


(A) The screen fitted to the new radios increased its production cost, resulting in a lower profit.

(B) Although the new model was cheaper to produce, its marketing proved to be very expensive.

(C) The revenues earned by the old model were two-thirds higher than those earned by the new model.

(D) Although it had excellent sound quality, the older model cost Tulips less.

(E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher.


In the Argument its given that the sale of new model is record high. This means that the revenue earned from new model is higher than previous any model.
Further, its been mentioned that profit of new model is less than previous model.
Higher Revenue but lower profit implies that cost is higher of the new model. This is mentioned in only option D.
Other options are based on assumptions.
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The Tulips electronics manufacturer came out with a revamped version 02 Sep 2023, 09:45
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Official Explanation



The Tulips electronics manufacturer came out with a revamped version of a radio they had once produced. The older model had excellent sound quality. The new version had a more attractive design and was fitted with a display screen. The management department was extremely pleased with the record-high sales figures produced by the new radio although the finance department claimed that the profit earned by the old radio in the same amount of time was higher by two-thirds.

Which of the following inferences is best supported by the statement made above?


(A) The screen fitted to the new radios increased its production cost, resulting in a lower profit.

Incorrect.

This is an Inference question, so the argument is comprised of premises only, on which basis you are asked to draw a conclusion:

    Premise A: The Tulips company have a new and old model of the same radio. The old model is no longer in production.
    +
    Premise B: The old model had excellent sound quality.
    +
    Premise C: The new model was more attractive than the old one. The new model had a display screen.
    +
    Premise D: The new model achieved the highest sales figures ever. However, it made fewer profits than the old model did in the same span of time.
    =
    Conclusion: ?

Although it may be concluded that the new product's costs in general may have affected the profit, the cost of the screen specifically is not mentioned in any of the premises. Therefore, we simply do not have enough information to assign the blame for the rising costs specifically to the screen, rather than some other factor, and this conclusion goes too far from the information given.


(B) Although the new model was cheaper to produce, its marketing proved to be very expensive.

Incorrect.

This conclusion goes too far from the information given to us. Although it may be concluded that the new model's costs in general may have affected the profit, the cost of marketing the products specifically is not mentioned in any of the premises.


(C) The revenues earned by the old model were two-thirds higher than those earned by the new model.

Incorrect.

This conclusion contradicts Premise D. The word revenues indicates the total income created by the product. In this question, the phrase record-high sales figures represents the amount of revenue made by the new product, meaning the new product exceeded all its predecessors.


(D) Although it had excellent sound quality, the older model cost Tulips less.

When the question provides information on two out of the three parameters of revenue\profits\expenses questions (in this case, revenues and profit), this indicates the answer choice should revolve around the third parameter (expenses). In this case, the lower expenses of the older radio account for its higher profits.

The other dangerous answer choices here are A and B, as both of these answer choices also mention expenses. However, both A and B are less preferable as answer choices because they also make assumptions about precisely what those costs were. A says the screen of the new model was more expensive; B says the new model's marketing was more expensive. But the argument, on which the correct answer choice should rely, says nothing as specific as that - and mentions neither screens nor marketing. We simply do not have enough information to reach A or B as the conclusion - all we can really learn from the argument is that the expenses must have risen in general terms.


(E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher.

Incorrect.

This is an Inference question, so the argument is comprised of premises only, on which basis you are asked to draw a conclusion:

    Premise A: The Tulips company have a new and old model of the same radio. The old model is no longer in production.
    +
    Premise B: The old model had excellent sound quality.
    +
    Premise C: The new model was more attractive than the old one. The new model had a display screen.
    +
    Premise D: The new model achieved the highest sales figures ever. However, it made fewer profits than the old model did in the same span of time.
    =
    Conclusion: ?

This conclusion contradicts Premise D. The phrase record-high sales figures means that none of their older product had ever sold more than the new one.
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