Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2308:00 PM PDT
-09:00 PM PDT
Video explanations + diagnosis of 10 weakest areas + 150+ short videos + study plan!
Apr 2301:30 AM EDT
-02:30 AM EDT
Struggling with GMAT Verbal as a non-native speaker? Harsh improved his score from 595 to 695 in just 45 days—and scored a 99 %ile in Verbal (V88)! Learn how smart strategy, clarity, and guided prep helped him gain 100 points.
Apr 2512:30 AM EDT
-01:30 AM EDT
At one point, she believed GMAT wasn’t for her. After scoring 595, self-doubt crept in and she questioned her potential. But instead of quitting, she made the right strategic changes. The result? A remarkable comeback to 695. Check out how Saakshi did it.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
26 Dec 2017, 18:02
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
58% (02:15) correct
42%
(02:15)
wrong
based on 973
sessions
History
Date
Time
Result
Not Attempted Yet
Metropolis-area dry cleaners have had a steady increase in business over the past year, and in order to take advantage of this trend and expand its market share, Neuman’s Dry Cleaning is planning to expand its facilities to enable it to handle a higher volume of garments. Neuman’s will maintain the same prices and weekly specials that it has employed for the past several years.
The potential success of Neuman’s plan to increase its market share is most called into question by which of the following, if true?
A. Neuman’s share of the local dry cleaning market has declined over the past year, but its dry cleaning facilities are always at maximum capacity.
B. The average turnaround time to get a garment dry cleaned at Neuman’s is slightly longer now than it was a year ago.
C. Most customers are not aware that Mr. Neuman sold his dry cleaning company to a franchise five years ago and no longer runs the facility himself.
D. Neuman’s is one of the two most popular dry cleaners in Metropolis.
E. Despite a recent increase in advertising, Neuman’s has been slightly less busy over the past six months than it was previously.
The potential success of Neuman’s plan to increase its market share is most called into question by which of the following, if true?
A. Neuman’s share of the local dry cleaning market has declined over the past year, but its dry cleaning facilities are always at maximum capacity.
B. The average turnaround time to get a garment dry cleaned at Neuman’s is slightly longer now than it was a year ago.
C. Most customers are not aware that Mr. Neuman sold his dry cleaning company to a franchise five years ago and no longer runs the facility himself.
D. Neuman’s is one of the two most popular dry cleaners in Metropolis.
E. Despite a recent increase in advertising, Neuman’s has been slightly less busy over the past six months than it was previously.
17 Dec 2018, 11:36
Kudos
Bookmarks
Yeah, good question - note that the main fact we have that suggests that this is a good idea is about the industry/market as a whole, but not about Neuman's specifically:
Metropolis-area dry cleaners have had a steady increase in business over the past year,
So the real gap in the argument is whether Neuman's is a part of this steady increase or not (for example you could say that "sales of mobile devices has surged since 2006" but if it's mostly iPhones and Samsungs, then it doesn't mean that Nokia is doing better today than it was back then).
With (A), note that it specifically calls out that even though Neuman's market share (percentage of all the city's business) is down, its stores are always busy. This mean that there's sufficient demand for what it's doing. This is likely evidence that the plan will work (if you're maxed out on capacity today, then adding capacity tomorrow seems like a good idea), but at the very least it doesn't weaken the argument.
With (E), there's evidence that Neuman's is not part of this surge: business is booming everywhere but Neuman's is less busy than it used to be, showing that it's not a beneficiary of the surge. If it's not maxing out its current capacity, there's no reason to believe that adding more capacity - without any other changes, as the last sentence shows that it will not make - will lead to an increase in business.
So basically the difference: (A) shows that Neuman's is part of the trend or at least as busy as it can handle right now. (E) shows that it's not part of the trend, and therefore can't expect that more capacity will help it capitalize on that trend.
Metropolis-area dry cleaners have had a steady increase in business over the past year,
So the real gap in the argument is whether Neuman's is a part of this steady increase or not (for example you could say that "sales of mobile devices has surged since 2006" but if it's mostly iPhones and Samsungs, then it doesn't mean that Nokia is doing better today than it was back then).
With (A), note that it specifically calls out that even though Neuman's market share (percentage of all the city's business) is down, its stores are always busy. This mean that there's sufficient demand for what it's doing. This is likely evidence that the plan will work (if you're maxed out on capacity today, then adding capacity tomorrow seems like a good idea), but at the very least it doesn't weaken the argument.
With (E), there's evidence that Neuman's is not part of this surge: business is booming everywhere but Neuman's is less busy than it used to be, showing that it's not a beneficiary of the surge. If it's not maxing out its current capacity, there's no reason to believe that adding more capacity - without any other changes, as the last sentence shows that it will not make - will lead to an increase in business.
So basically the difference: (A) shows that Neuman's is part of the trend or at least as busy as it can handle right now. (E) shows that it's not part of the trend, and therefore can't expect that more capacity will help it capitalize on that trend.
General Discussion
24 Dec 2018, 04:42
Kudos
Bookmarks
VeritasPrepBrian
I disagree with your explanation . This is not really a GMAT like question. In, E , key words are 'slightly less busy than previously' which means it may have been busy in the first 6 months of the year which in turn means that N's business was also going well. What is only says is that advertising has not made much of a difference. A looks the best option to me. Since facilities are at full capacity, further expansion will not make any difference and hence this weakens!
