Rent rates being exorbitant in New Avenue, an IT hub, a movie hall owner argues that recovering even the business costs from a theatre in New Avenue would be impossible, let alone making a profit from it. At the usual ticket prices, a theatre in New Avenue would need, on an average, 50% occupancy rate for 75% of all daily shows to just about cover all its costs. His theatre in the Shopping Arcade gets on average just 35% occupancy for all shows in any given day.
Which of the following statements provides the best support for the movie hall owner’s argument?
Pre-thinking.
-- The argument's Conclusion is that 'Recovering even the business costs from a theatre in New Avenue would be impossible, let alone making a profit from it' based on the Premise that theatre in the Shopping Arcade gets on average just 35% occupancy for all shows in any given day (at given ticket prices).
-- So, if the argument is to be supported, evidence in the form of similar or lower levels of occupancy at the New Avenue theatre vis-a-vis the Shopping Arcade theatre is required.A. Being located in the heart of the city, New Avenue is a popular commercial center, making the rental of any building or land an expensive affair in that area.
Effect of high rentals can be covered through high occupacy levels at the new thatre. Since the prompt makes no mention of the occupancy levels, it doesn't provide enough support for the argument.
B. Owners of movie halls in New Avenue were able to keep their businesses profitable before economic boom skyrocketed the rent rates in the surrounding areas.
Additional piece of information from the past. May not be repeated in the future. Not a sound support for the argument.C. Continuous failure to recover the business costs would send the movie hall owner into significant debts, forcing him to sell off the movie hall.
Future prediction. May or may not come true. Such prediction-based prompts are rarely true.D. Significantly more number of professionals at IT hubs are not more likely to frequent a theatre in the vicinity than the general public at the arcade.
Provides for the required evidence in the form of similar or lower levels of occupancy at the New Avenue theatre vis-a-vis the Shopping Arcade theatre. In line with the pre-thinking. Hence, the correct option.E. The number of daily shows at New Avenue will not be higher than the number of daily shows at Shopping Arcade location.
The occupancy levels at the theatres provide a better support structure for the argument as compared to the the number of daily shows. As compared to option (D), it provides weaker support for the conclusion of the argument.IMO, (D) should be correct.