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Sayali narrates her experience of succeeding on the GMAT after 4 attempts & 2 years of preparations. Sayali achieved 99 percentile score on GMAT Focus edition after significantly improving her performance in verbal section of the GMAT
What do András from Hungary, Pablo from Mexico, Conner from the United States, Giorgio from Italy, Leo from Germany, and Rishab from India have in common? They all earned top scores on the GMAT Focus Edition using the Target Test Prep course!
What do András from Hungary, Conner from the United States, Giorgio from Italy, Leo from Germany, and Saahil from India have in common? They all earned top scores on the GMAT Focus Edition using the Target Test Prep course!
The cost of gas-burning grills has dropped nearly 40% in the last year, prompting an increase in sales. Hank’s Hardware responded to the popularity of gas grills with large displays and deeply-discounted sale prices. Sales of gas grills at Hank’s Hardware went up by a third, but at the end of the quarter managers were shocked to find they had lost money on gas grills.
Which of the following, if true, is the best explanation for why Hank’s Hardware’s profits on gas grills are suffering?
(a) Sales volume has been miscalculated, surprising managers with a loss in profits. (b) The further discounts offered by sale prices account for a larger dollar amount than the increase in sales, leading to a loss of profits. (c) The reduction in cost is caused by shoddy construction, which is why many people who purchased gas grills are returning them, leading to a loss in profits. (d) Wood-burning grills are more popular than gas-grills; since Hank’s carries mostly gas grills, their profits are suffering (e) Customers only bought gas grills when they were on sale; once the sale was over, they stopped buying the grills, leading to a loss in profits.
OA (b) maybe i'm missing something here, but (b) can't explain why the store is losing money (there's a difference between losing money, as in the situation discribed in the pasage, and decreased profits, which (b) suggests) the only answer that can explain loosing money is (c) but it's a bit lame
maybe "they had lost money on gas grills" should be rephrased to "their profits declined"?
Archived Topic
Hi there,
Archived GMAT Club Tests question - no more replies possible.