GMAT Club World Cup 2022 (DAY 8): The year-end sales report from a vet

Question

The year-end sales report from a veterinary vaccine company states the following:

A regulation significantly curbing the use of mink furs to manufacture garments was passed during the middle of this year. However, compared to last year, there was no change in the revenues from the sales of the vaccine Minkvac that is mandatory to be administered to all the minks that are used to manufacture garments.

Because of the above report, the managers of the vaccine company did not reduce the projected revenues from Minkvac for the next year, a value that was estimated last year.

Which of the following options, if true, indicates most strongly that the projection made by the managers for the next year mentioned in the passage would most likely not be met?

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter.

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.

Thank you  sayantanc2k  for the question!!!

V36-15

Bunuel · Answer

GMAT CLUB Official Explanation:

A. This option is irrelevant. The projection is about the revenues from Minkvac and not from other vaccines.

B. This option is irrelevant. The projection is about the revenues from Minkvac and not from other vaccines.

C. The effectiveness of the vaccine has no bearing on the revenues from the vaccine, more so because it is mandatory to administer the vaccine to all the minks that are used to manufacture garments.

D. Correct.  This option highlights a possible reason that the effect of the regulation is not perceivable this year, but will be perceivable next year. Because the sale of Minkvac was already finished (in the first quarter of this year) before the regulation came out (middle of this year), the effect of the regulation is not seen this year. The first time the effect of the regulation can be seen on the sale of the vaccines will be the first quarter of next year and it is likely the revenues from the vaccine would reduce because of curbing the use of minks.

E. This option is irrelevant. The question is about the change of revenue from this year to next year and has no bearing on the change in revenues from last year to this year.

Iotaa · Answer

Any option which suggest revenue came before mid of last year, can simply fail the manager's prediction.

A.  A new vaccine, Catvac, developed by the company would bring in significant revenues next year : Not relevant.  Reject

B.  Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned : Not relevant.  Reject

C.  The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be : Not relevant.  Reject

D.  Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter : Correct

E.  Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected : Not relevant.  Reject

D is the correct option

Archit3110 · Answer

A regulation significantly curbing the use of mink furs to manufacture garments was passed during the middle of this year. However, compared to last year, there was no change in the revenues from the sales of the vaccine

Conclusion : Minkvac that is mandatory to be administered to all the minks that are used to manufacture garments

the managers of the vaccine company did not reduce the projected revenues from Minkvac for the next year, a value that was estimated last year.

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.  not relevant

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.  this is a strengthener

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.  not relevant
 
 D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter  correct option also the fact that regulation has curbed the sale of mink so impact can also come in next year.

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.

not relevant

OPTION D is correct

Kinshook · Answer

The year-end sales report from a veterinary vaccine company states the following:

A regulation significantly curbing the use of mink furs to manufacture garments was passed during the middle of this year. However, compared to last year, there was no change in the revenues from the sales of the vaccine Minkvac that is mandatory to be administered to all the minks that are used to manufacture garments.

Because of the above report, the managers of the vaccine company did not reduce the projected revenues from Minkvac for the next year, a value that was estimated last year.

Which of the following options, if true, indicates most strongly that the projection made by the managers for the next year mentioned in the passage would most likely not be met?

We not concerned with any other vaccine other than Minkvac. 
Incorrect

Unless the results of latest clinical trials for Minkvac are published and affects sales, the statement does not affect sales of Minkvac vaccine.
Incorrect

Since the regulations were introduced in the middle of the year (after second quarter) and almost all vaccines are sold in the first quarter. Therefore, sales of Minkvac vaccine was not affected this year. But the same may not hold true for next year and projections made by managers most likely may not be met.
Correct

This statement actually supports managers prediction that despite high-performing sales managers responsible for Minkvac leaving sales projections will be met.
Incorrect

IMO D

soudipsengupta · Answer

Manager's projection:  Because of the above report, the managers of the vaccine company did not reduce the projected revenues from Minkvac for the next year, a value that was estimated last year.

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.
  INCORRECT  . How much revenues will another vaccine bring is irrelevant to the argument. The projection talks solely of revenues from Minkvac.

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.
  INCORRECT  . Again how the Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned is not relevant to the argument. The projection talks solely of revenues from Minkvac.

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.
  INCORRECT  . This may one of the reason why revenues may be impacted, but effectiveness of the vaccine reduced from 90% to 80% will be the least concern for buyers if there is a regulation significantly curbing the use of mink furs to manufacture garments was passed during the middle of this year. Even if effectiveness stayed at 90%, the revenues for next year could well be impacted.

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter.
  CORRECT  . If all the vaccines were already bought in the first quarter of the year, before the restriction was in effect, the projection of sales of the Minkvac vaccine for the following year put forward by managers will not be accurate. Many buyers who bought the vaccine in the first quarter of this year will opt out from buying the vaccines knowing the restriction is in place.

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.
  INCORRECT  . This is again irrelevant to the crux of the argument. In fact this statement slightly strengthen the argument by pointing that even though some high performing managers responsible for Minkvac sales left last year, the revenues from Minkvac this year were not affected. This shows that the old managers are not factors in increased sales, and thus next year the sales figure can very well see the same projection of sales.

gmatophobia · Answer

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.

We want to find a reason why the projections made by the managers would not be met. This options does not provide any evidence as such. Hence this is out of scope

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.

Out of scope as we are considered about Minkvac

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be .

Doesn't help give strong evidence that 80% will not meet the requirement. This is incorrect

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarte .

Correct. This indicates that the vaccines were sold before the regulation. Hence the number of vaccines sold henceforth will not meet the number

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.

Incorrect. Does not affect the argument

IMO D

sanjitscorps18 · Answer

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.
--> This would probably help the company to achieve the target

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.
--> The vaccine marketing cost would anyways had been an expense, not a revenue source

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.
--> Vaccine effectiveness is not relevant

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter.
-> Correct. The report was published middle of the year and by that time the vaccine had sold as per schedule. The same was incorrectly taken to create projections for net year

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.
--> Irrelevant

IMHO Option D

manish1708 · Answer

Answer: D

The year-end sales report from a veterinary vaccine company states the following:

A regulation significantly curbing the use of mink furs to manufacture garments was passed during the middle of this year. However, compared to last year, there was no change in the revenues from the sales of the vaccine Minkvac that is mandatory to be administered to all the minks that are used to manufacture garments.

Because of the above report, the managers of the vaccine company did not reduce the projected revenues from Minkvac for the next year, a value that was estimated last year.

Which of the following options, if true, indicates most strongly that the projection made by the managers for the next year mentioned in the passage would most likely not be met?

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.  --> Incorrect. Another vaccine is out of scope.
 
B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.  --> Incorrect. Another vaccine is out of scope.

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be. - -> Incorrect. Effectiveness of vaccine has no impact on the argument as long as sales are happening and revenue is generated and estimation is met.

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter.  -->  Correct . This means that in previous year, by the time the regulation was passed, the Minkvac vaccine was already sold and hence the regulation had no impact on revenue last year. For the next year, the garment industry will have an impact because of regulation which will make them buy less vaccine in first quarter of next year. In this way, the projection made by manager will most likely not be met.

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.  --> Incorrect. High-performing sales managers are irrelevant and out of scope. Point is whether enough sales are happening or not to generate required/estimated revenue. Then it doesn't matter whether the sales managers are high performing or not.

VelvetThunder · Answer

ANSWER D

Conclusion:  the managers of the vaccine company did not reduce the projected revenues from Minkvac for the next year, a value that was estimated last year.

Premise:  there was no change in the revenues from the sales of the vaccine Minkvac, in spite of regulation significantly curbing the use of mink furs in which Minkvac is used

Gap:  Maybe the revenue remained the same because most of the sales were done in the 1st half of the year before the regulation was passed

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.  This is the opposite of what we want. This supports the argument

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.  Marketing or sales of Racoonvac has nothing to do with Minkvac's revenue

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.  Effectiveness is irrelevant here

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter.  CORRECT, since most of the sales were done in 1st quarter, hence the regulation didn't affect the revenue.

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.

av1901 · Answer

Regulation to ban using mink fir for garment manufacture was passed middle of this year but still revenues of this year were the same as last year. Based on this, people manufacturing Minkvac have not changed their projection for the next year, a value that was estimated last year. 
We need to determine what would most weaken the stance and result in their revenue projections not being met the next year.
Let us examine the answer options:

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.
 Irrelevant, we are only concerned with Minkvac. ELIMINATE

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.
 Irrelevant again, concerned with Minkvac

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.
 Close but not enough. ELIMINATE

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter.
 Yes! Minkvac is necessary for minks used for garment manufacture. Bill was passed middle of the year and all the vaccinees for this year were already sold at the beginning of this year before the bill came but next year it will not sell before of the ban. ANSWER

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.
 If them leaving did not affect this year, it will not affect next also. ELIMINATE

Answer - D

Lalykys · Answer

ANSWER D for me

Which of the following options, if true, indicates most strongly that the projection made by the managers for the next year mentioned in the passage would most likely not be met? => We should find a fact or a reason explaining why sales of minkvac did not change this year and will change next year.

Logically, the sales of the vaccinne Minkvac should drop as the regulation curbing the use of mink to manufacture garments will then drop the use of Minkvak which is mandatory when to be used to manufacture garments.

(guessing) So we have 2 possibilities :

- Either, the sales this year where part of a contract signed in last year or earlier the same year so that there were no choice to buy it as already planned ;

- Or the price of Minkvak rose this year to compensate the drop in sales so that revenue is the same => in that case it is likely that next year, companies buying minkvac may try to find another suitable way (cheaper for eg) to manufacture garments.

So we can try to find an argument that sustain One of these possibilities.

A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year. has nothing to do with sales of Minkvac, Minkvac is mandatory for mink => INCORRECT

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned. => has nothing to do with sales of Minkvac as minkvac is mandatory here, or at least it will increase the sales of minkvac so that the projection made by managers may be met => INCORRECT

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be. We have no proof that effectiveness of vaccine is needed, Minkvac is mandatory to be administered, not to be effective => INCORRECT

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter. => This is the best solution that goes in the same way as our first guess => CORRECT

E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected. => We have no proof or no reason to think that will affect sales of Minkvac => INCORRECT

akash2703 · Answer

Imo D
 
A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year.
 Out of scope. We need to see the revenues from the sales of the vaccine Minkvac.
 B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned.
 Same as A.
 C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.
 Although the effectiveness has decreased, the revenue this year has not changed.
 D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter.
 Correct. Ideally this year the revenue should decrease. The reason that the revenue didn't change this year is because of the disease. This may not happen next year. 
E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected.
 It means the revenue will not be affected next year too.

desertEagle · Answer

Premise - No change in revenue from Minkvac from last year even after curb on mink garment
Conclusion - Revenue will be same next year

We need to find a reason that conclusion will be weakened

POE
A. A new vaccine, Catvac, developed by the company would bring in significant revenues next year. -  Catvac is OUT OF SCOPE - INCORRECT

B. Development of the company’s another vaccine called Racoonvac was hindered because of safety concerns and will not be marketed next year as previously planned. -  Racoonvac is OUT OF SCOPE - INCORRECT

C. The latest clinical trial results for Minkvac have proven that the effectiveness of the vaccine is only 80% as compared to 90% previously thought to be.  New reason has come to light. This can hinder the projections. -- CORRECT

D. Minkvac is a vaccine against a seasonal disease that spreads in the second quarter of the year and hence almost all the vaccines are sold in the first quarter. -  The results are based on year on year performance not on a quarterly basis. -- INCORRECT
 
E. Even though some high-performing sales managers responsible for Minkvac sales left the company last year, the revenues from Minkvac this year are not affected. ---  Gives support to conclusion -- OPPOSITE - INCORRECT

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GMAT Club World Cup 2022 (DAY 8): The year-end sales report from a vet

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GMAT Club World Cup 2022 (DAY 8): The year-end sales report from a vet

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

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