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Difficulty:
65%
(hard)
Question Stats:
56%
(02:09)
correct 44%
(02:16)
wrong
based on 162
sessions
History
Date
Time
Result
Not Attempted Yet
TurboGo – a toy car manufacturer generates most of its profits from sale of batteries. To increase profits, TurboGo has come up with an innovative design for its miniature toy cars such that these cars can be fitted only with special miniature sized batteries designed by TurboGo itself. These newly designed batteries will not be sold at a price lower than TurboGo’s current battery.
Which of the following statements best supports the assertion that TurboGo’s plan will lead to an increase in the company’s profits from the sales of miniature toy cars?
A) The new car modelled after a sports car consumes twice as much energy on average for a 30-minute play interval as the earlier model did.
B) Most competing toy car manufacturers consider TuboGo’s strategy as innovative and plan to follow suit.
C) The market research done by TurboGo’s marketing team shows that most of its current customers are more concerned about the design of the car than about the design of the battery.
D) TurboGo sells batteries at a price higher than is sold by generic battery manufacturers.
E) The new battery design makes it easier to swap batteries doing away with the need to open the battery cover.
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Passage Analysis TurboGo – a toy car manufacturer generates most of its profits from sale of batteries. TurboGo is a toy car manufacturer.
Most of its profits come from the sales of the batteries for its toy cars. To increase profits, TurboGo has come up with an innovative design for its miniature toy cars such that these cars can be fitted only with special miniature sized batteries designed by TurboGo itself. TurboGo wants to increase its profits further. So, it designed toy cars that could be fitted only with TurboGo’s own batteries. These newly designed batteries will not be sold at a price lower than TurboGo’s current battery. These new batteries will be sold at a price at least as much as the current ones.
Pre-thinking Strengthener1: People will prefer the newly designed toy car to most other toy cars. Strengthener2: People will not mind spending money on purchasing TurboGo’s new batteries even if they are not cheaper than other batteries in the market. Strengthener3: People will have to purchase these new batteries more frequently.
Answer Choices A) The new car modelled after a sports car consumes twice as much energy on average for a 30-minute play interval as the earlier model did. Correct – in line with pre-thinking #3
B) Most competing toy car manufacturers consider TuboGo’s strategy as innovative and plan to follow suit. Other manufacturers’ plans are irrelevant to the current conclusion.
C) The market research done by TurboGo’s marketing team shows that most of its current customers are more concerned about the design of the car than about the design of the battery. Design of the battery is irrelevant to the conclusion.
D) TurboGo sells batteries at a price higher than is sold by generic battery manufacturers. Comparison with other battery manufacturers is irrelevant.
E)The new battery design makes it easier to swap batteries doing away with the need to open the battery cover. Ease of replacement of batteries is irrelevant to the conclusion.
Archived Topic
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Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).
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