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31 Dec 2025, 22:00
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
76% (01:56) correct
24%
(02:14)
wrong
based on 290
sessions
History
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Not Attempted Yet
Like most manufacturers of high-end racing bicycles, Pedal Max earns most of its profits on replacement parts rather than on the bicycles themselves. As Pedal Max cannot sell its replacement parts as cheaply as other manufacturers can, it plans to redesign its high-end racing bicycles so that they will accept only newly-designed Pedal Max replacement parts, which will be sold at the same price as Pedal Max’s current replacement parts.
Which of the following, if true, most strongly supports Pedal Max’s projection that its plan will lead to an increase in its sales of replacement parts?
A. The new Pedal Max high-end racing bicycles will be introduced at prices higher than the prices Pedal Max charges for its current bicycle models.
B. It is likely that, in the foreseeable future, high-end racing bicycle manufacturers will have to increase the prices charged for replacement parts.
C. According to comprehensive market research, riders of high-end racing bicycles find the new Pedal Max bicycles considerably better than other high-end racing bicycles they had ridden.
D. A rival to Pedal Max recently announced similar plans to introduce high-end racing bicycles that will accept only the replacement parts produced by that rival.
E. The newly designed Pedal Max replacement parts will cost a bit more to manufacture than Pedal Max’s current replacement parts do.
Which of the following, if true, most strongly supports Pedal Max’s projection that its plan will lead to an increase in its sales of replacement parts?
A. The new Pedal Max high-end racing bicycles will be introduced at prices higher than the prices Pedal Max charges for its current bicycle models.
B. It is likely that, in the foreseeable future, high-end racing bicycle manufacturers will have to increase the prices charged for replacement parts.
C. According to comprehensive market research, riders of high-end racing bicycles find the new Pedal Max bicycles considerably better than other high-end racing bicycles they had ridden.
D. A rival to Pedal Max recently announced similar plans to introduce high-end racing bicycles that will accept only the replacement parts produced by that rival.
E. The newly designed Pedal Max replacement parts will cost a bit more to manufacture than Pedal Max’s current replacement parts do.
01 Jan 2026, 04:16
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Pedal max plans to redesign its high-end racing bicycle parts so that the replacement parts acceptable to these bicycles only the ones manufactured by Pedal Max.
To support the projection that this plan will increase sales of replacement parts, we have to ensure that customers still continue using the Pedal Max bycycles as if they don't then the sales for replacement parts will decrease for sure. Option C says the same, so correct.
To support the projection that this plan will increase sales of replacement parts, we have to ensure that customers still continue using the Pedal Max bycycles as if they don't then the sales for replacement parts will decrease for sure. Option C says the same, so correct.
01 Jan 2026, 11:50
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ExpertsGlobal5
The passage mentions bicycle manufacturers in general earn most of the profits from Replacement parts rather than sale of bicycles. This principle applies to the manufacturer Pedal max also, where major chunk of profit comes from Replacement parts.
PM replacement parts is usually costlier than other replacement parts manufactured by other companies. So, making them cheap is not possible.
So, Pedal max plans to redesign the manufacturing of bicycle, so that it accepts replacement parts of Pedal max alone, and not from any other competitor. And, the replacement parts are sold at the current price.
Which of the following most strongly supports Pedal Max’s projection that its plan will lead to an increase in its sales of replacement parts?
A. The new Pedal Max high-end racing bicycles will be introduced at prices higher than the prices Pedal Max charges for its current bicycle models.
This mentions the price of bicycles is increased from the current rate, usually market mood is price increase often leads to decreased demand. So, this might not support the increase in sale of replacement parts. As, the volume of pedal max bicycles currently on road will not show an increase. Thus, in the worst case scenario of all bicycles on the road demanding replacement parts, the sales might not show absolute increase. To show an increase we need new entrants of pedal max on road. Hence, Wrong.
B. It is likely that, in the foreseeable future, high-end racing bicycle manufacturers will have to increase the prices charged for replacement parts.
This is a generalised statement about the future sales, which may or may not occur. An increase in replacement parts will push the demand for bicycles down. So, replacement parts sales cannot show an increase. With a scenario, considering all prices are rising, this puts every one at a level playing turf, but the pedal max replacement part is actually costlier compared to others. But, increased price will hit the budget concern of the consumer. Thus, opting for lesser priced products. Hence, sales won’t go up.
C. According to comprehensive market research, riders of high-end racing bicycles find the new Pedal Max bicycles considerably better than other high-end racing bicycles they had ridden.
If the market research is true, and more high end racing bicycles find Pedal Max their first choice than other competitors. This, aspect might increase the sales of pedal max bicycles, and eventually the projected future sales of pedal max replacement parts is anticipated to be on the rising trend. Hence, correct answer.
D. A rival to Pedal Max recently announced similar plans to introduce high-end racing bicycles that will accept only the replacement parts produced by that rival.
This option mentions a mimicking reaction of a competitor towards Pedal max plans, there are more other factors that determine the sales volume increase. This option doesn’t provide concrete information to arrive at a conclusion. Hence, wrong.
E. The newly designed Pedal Max replacement parts will cost a bit more to manufacture than Pedal Max’s current replacement parts do.
This option sees things from the companies perspective, cost incurred to make this replacement parts are much more, so the selling price is going to increase. But, the question has clearly said that the selling price of new part is same as the old one. This option is irrelevant. Hence, Wrong.
Option C
