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04 Feb 2026, 05:44
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Difficulty:
45%
(medium)
Question Stats:
67% (02:06) correct
33%
(02:29)
wrong
based on 81
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Tellogs and Testle are the two rival brands that sell breakfast cereals in Milkdom. Tellogs, in an effort to increase its sales in the bestselling winter season lasting four months in Milkdom, introduces steep discounts on all kinds of its breakfast cereals for 15 days. As a result, Tellogs reports an impressive increase in sales in the first month leaving Testle far behind. The increase in sales was driven primarily by Tellogs' loyal customers, who bought ever more than the new customers enticed by the discounts. However, it was found, at the end of the winter season, that Tellogs' revenues from sales did not register a significant lead on Testle, which never introduced a discount.
Which of the following, if true, logically best explains the discrepancy?
A. Many new customers who bought from Tellogs during the period of the discount bought from Testle when the discount ended.
B. Not all customers who usually bought Testle bought the brands of Tellogs in the first month of the discount.
C. Customers loyal to Tellogs stockpiled it without increasing their seasonal consumption.
D. Testle had a more diverse variety of flavors than Tellogs and thus appealed to a wider market than Tellogs.
E. The rate of conversion of new customers to loyal ones has been historically better for Tellogs than for Testle.
(Source='TCYOnline')
Which of the following, if true, logically best explains the discrepancy?
A. Many new customers who bought from Tellogs during the period of the discount bought from Testle when the discount ended.
B. Not all customers who usually bought Testle bought the brands of Tellogs in the first month of the discount.
C. Customers loyal to Tellogs stockpiled it without increasing their seasonal consumption.
D. Testle had a more diverse variety of flavors than Tellogs and thus appealed to a wider market than Tellogs.
E. The rate of conversion of new customers to loyal ones has been historically better for Tellogs than for Testle.
(Source='TCYOnline')
04 Feb 2026, 06:20
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Bookmarks
Tellogs and Testle are the two rival brands that sell breakfast cereals in Milkdom. Tellogs, in an effort to increase its sales in the bestselling winter season lasting four months in Milkdom, introduces steep discounts on all kinds of its breakfast cereals for 15 days. As a result, Tellogs reports an impressive increase in sales in the first month leaving Testle far behind. The increase in sales was driven primarily by Tellogs' loyal customers, who bought ever more than the new customers enticed by the discounts. However, it was found, at the end of the winter season, that Tellogs' revenues from sales did not register a significant lead on Testle, which never introduced a discount.
Which of the following, if true, logically best explains the discrepancy?
The “discrepancy” is: big first month sales spike, but no meaningful revenue lead over the full four month season. The best explanation is that the first month spike did not reflect higher total season demand and also happened at lower prices.
A. Many new customers who bought from Tellogs during the period of the discount bought from Testle when the discount ended.
This could reduce repeat business, but the passage says the first month surge was driven mainly by loyal customers, not new ones. So this does not best explain why the season-long revenue lead disappeared.
B. Not all customers who usually bought Testle bought the brands of Tellogs in the first month of the discount.
This does not explain the change from “far behind” in month 1 to “no significant lead” by season end. It just says some people stayed with Testle.
C. Customers loyal to Tellogs stockpiled it without increasing their seasonal consumption.
This explains it best. Loyal customers may have bought a lot during the discount, but that mostly pulled forward purchases they would have made later anyway. So later months’ sales drop, and because those early purchases were discounted, total season revenue does not end up much higher than Testle’s.
D. Testle had a more diverse variety of flavors than Tellogs and thus appealed to a wider market than Tellogs.
Too general and does not explain why Tellogs’ big first month advantage failed to translate into a season-long revenue lead.
E. The rate of conversion of new customers to loyal ones has been historically better for Tellogs than for Testle.
That would tend to help Tellogs build a lasting lead, not explain why it did not.
Answer: (C)
Which of the following, if true, logically best explains the discrepancy?
The “discrepancy” is: big first month sales spike, but no meaningful revenue lead over the full four month season. The best explanation is that the first month spike did not reflect higher total season demand and also happened at lower prices.
A. Many new customers who bought from Tellogs during the period of the discount bought from Testle when the discount ended.
This could reduce repeat business, but the passage says the first month surge was driven mainly by loyal customers, not new ones. So this does not best explain why the season-long revenue lead disappeared.
B. Not all customers who usually bought Testle bought the brands of Tellogs in the first month of the discount.
This does not explain the change from “far behind” in month 1 to “no significant lead” by season end. It just says some people stayed with Testle.
C. Customers loyal to Tellogs stockpiled it without increasing their seasonal consumption.
This explains it best. Loyal customers may have bought a lot during the discount, but that mostly pulled forward purchases they would have made later anyway. So later months’ sales drop, and because those early purchases were discounted, total season revenue does not end up much higher than Testle’s.
D. Testle had a more diverse variety of flavors than Tellogs and thus appealed to a wider market than Tellogs.
Too general and does not explain why Tellogs’ big first month advantage failed to translate into a season-long revenue lead.
E. The rate of conversion of new customers to loyal ones has been historically better for Tellogs than for Testle.
That would tend to help Tellogs build a lasting lead, not explain why it did not.
Answer: (C)
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