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Question Stats:
79% (02:11) correct
21%
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wrong
based on 386
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History
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Starting at the beginning of 2015, SunDog Airlines replaced its turboprop planes with regional jets for all routes longer than 300 miles. SunDog sold between 10 and 30 percent more fares in 2015 than in any of the previous five years, yet it recorded substantially lower profits for each quarter of 2015 than for the same quarter in any of the previous five years. SunDog’s chief executive concluded that the jets' higher operating costs were responsible for the decline in profits.
Which of the following, if true, most seriously weakens the chief executive’s conclusion?
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years.
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced.
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced.
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced.
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost.
_________________
Which of the following, if true, most seriously weakens the chief executive’s conclusion?
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years.
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced.
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced.
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced.
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost.
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GMAT Club Official Explanation
SunDog’s chief executive attributes the decline in the airline’s year-over-year profits for 2015 to higher operating costs for the new regional jets, as compared to the operating costs for the turboprop planes used previously.
To weaken this argument, we need some other factor that could have reduced SunDog’s profits for 2015 as compared to 2010-2014. Because profit is revenues less costs, this alternative factor could act either (i) by increasing the airline’s costs or (ii) by decreasing its revenues for 2015 relative to the foregoing years.
Choice (E) states that 35 percent of SunDog’s 2015 airfares were sold at cost, meaning that those fares contributed exactly zero to the airline’s 2015 profits. The total number of fares that SunDog sold for 2015 ranged between 10 and 30 percent greater than the corresponding figures for 2010 through 2014; this whole range lies below 35 percent, so the zero-profit fares cover the entire increase in fares sold for 2015 with some to spare. Thus the number of fares that SunDog sold for a profit was actually lower in 2015 than in any of the five preceding years.
This decrement in revenue provides an alternative explanation for the decline in SunDog’s profits that has nothing to do with operating costs, so (E) is the correct answer.
INCORRECT ANSWERS:
(A) Only SunDog’s finances are relevant to this argument; no comparisons are being made to any other airline. Furthermore, the SunDog CEO’s central claim is about the relative [un]profitability of regional jets, compared to turboprop planes; there is no indication that any of the other airlines ever made a switch to jets from turboprops, so the other airlines’ financials have no relevance to that claim.
(B) Comfort and reliability have no direct bearing on revenues, costs, or profits, so this choice is irrelevant.
(C) The reduction in the total number of flights on the affected routes is not quantified, nor are we told how much the regional jets cost to operate as a multiple of the operating costs of the previous turboprop planes. Accordingly, there is no way to determine whether this reduced number of jet flights cost less than, the same as, or more than the previous slate of turboprop flights did to operate overall.
(D) The ratio of the jet’s to the turboprop’s fuel cost per person aboard is not quantified, nor are we told the total capacity of each regional jet as a multiple of the previous turboprop plane’s capacity. Accordingly, there is no way to determine whether SunDog’s overall fuel costs have gone up, gone down, or remained unchanged.
The correct answer is (E).
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General Discussion
Answer: E)
Conclusion: Jet's higher operating costs are responsible for the fall in profits
A) Other airlines aren't helpful to weaken the idea that SunDog's profits fell due to higher operating costs -> INCORRECT
B) This deepens the mystery but doesn't weaken the idea that higher operating costs were responsible for a fall in profits -> INCORRECT
C) This could even be a strengthener, if they fly half the number of flights but see lower profits, then the higher operating cost per flight could be the reason -> INCORRECT
D) Similar to C, could be a strengthener -> INCORRECT
E) The revenues were lower because tickets were sold at discounted prices. This weakens the idea that profits were lower due to operating costs and suggests they were lower because revenue was -> CORRECT
Conclusion: Jet's higher operating costs are responsible for the fall in profits
A) Other airlines aren't helpful to weaken the idea that SunDog's profits fell due to higher operating costs -> INCORRECT
B) This deepens the mystery but doesn't weaken the idea that higher operating costs were responsible for a fall in profits -> INCORRECT
C) This could even be a strengthener, if they fly half the number of flights but see lower profits, then the higher operating cost per flight could be the reason -> INCORRECT
D) Similar to C, could be a strengthener -> INCORRECT
E) The revenues were lower because tickets were sold at discounted prices. This weakens the idea that profits were lower due to operating costs and suggests they were lower because revenue was -> CORRECT
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Answer: E
A- doesnt explain Sundog's situation. Irrelevant.
B- Irrelevant to the cause of lower profits.
C- Doesnt directly explain the decline in profits.
D- Somewhat explains. But there could be other reasons
E- Gives a direct alternative cause.
A- doesnt explain Sundog's situation. Irrelevant.
B- Irrelevant to the cause of lower profits.
C- Doesnt directly explain the decline in profits.
D- Somewhat explains. But there could be other reasons
E- Gives a direct alternative cause.
Posts: 60
i am going with option e.
as it provides stronger alternative explanation for lower profits
a and b incorrect - largely irrelevant
c incorrect - suggest lower cost but doesn't explain the profit decline
d incorrect - one operating cost is lower but not total operating costs
as it provides stronger alternative explanation for lower profits
a and b incorrect - largely irrelevant
c incorrect - suggest lower cost but doesn't explain the profit decline
d incorrect - one operating cost is lower but not total operating costs
Lets break the argument:
SunDog airline replaced its turboprop planes with regional jets for all routes larger than 300 miles
Revenue increased due to high selling of 10-30% more fares in 2015 as compared to previous 5 years
Yet, it has less profit per quarter in 2015 as compared to any of the similar quarter of all the previous 5 years.
Conclusion by chief executive: Jets higher operating costs was the reason for profit decline
Argument asks to weakens this conclusion.
Approach: We have to find alternative explanation for profit decline.
Lets Look at each option one by one.
A- It says all the airlines that operated regional jets in the same route had more profit for 2015 than any previous 5 years. But this do not say any reason related to decline in profit of Sundog airline. Others may see increase in profit but we can't say Chief executive conclusions for Sundog profit decline is not valid because of this statement. Easy rule out
B- Absolute nothing to do with profit. Passengers feedback on comfort and reliability has no bearing on chief executive's conclusion. It may be the reason for high revenue but it doesn't say that it will have high operating cost and profit will decline. Rule it out
C- Again replacing a low capacity plane with high capacity plane can't conclude it will have high operating cost. it may in fact decrease operating cost. probably go against the argument. Rule out for now
D- If replaced plane uses less fuel per person than the earlier one. It should again decrease operating cost but other factors may impact operating cost which we dont know. so we can't conclude. Rule out
E- This seems to be a good explanation as 35 % fares were sold at promotional rates which account increases the revenue but has no profit since it was sold at airlines own per passenger cost. So only 65% contributed in profit and it may give a good reason for decline in profit. MY answer
Answer-E
SunDog airline replaced its turboprop planes with regional jets for all routes larger than 300 miles
Revenue increased due to high selling of 10-30% more fares in 2015 as compared to previous 5 years
Yet, it has less profit per quarter in 2015 as compared to any of the similar quarter of all the previous 5 years.
Conclusion by chief executive: Jets higher operating costs was the reason for profit decline
Argument asks to weakens this conclusion.
Approach: We have to find alternative explanation for profit decline.
Lets Look at each option one by one.
A- It says all the airlines that operated regional jets in the same route had more profit for 2015 than any previous 5 years. But this do not say any reason related to decline in profit of Sundog airline. Others may see increase in profit but we can't say Chief executive conclusions for Sundog profit decline is not valid because of this statement. Easy rule out
B- Absolute nothing to do with profit. Passengers feedback on comfort and reliability has no bearing on chief executive's conclusion. It may be the reason for high revenue but it doesn't say that it will have high operating cost and profit will decline. Rule it out
C- Again replacing a low capacity plane with high capacity plane can't conclude it will have high operating cost. it may in fact decrease operating cost. probably go against the argument. Rule out for now
D- If replaced plane uses less fuel per person than the earlier one. It should again decrease operating cost but other factors may impact operating cost which we dont know. so we can't conclude. Rule out
E- This seems to be a good explanation as 35 % fares were sold at promotional rates which account increases the revenue but has no profit since it was sold at airlines own per passenger cost. So only 65% contributed in profit and it may give a good reason for decline in profit. MY answer
Answer-E
SunDog’s chief executive concluded that the jets' higher operating costs were responsible for the decline in profits.
Which most seriously weakens the conclusion?
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years. NO
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced. Then maybe more people are using jets. NO
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced. It means airlines is operating efficiently and hence the profits should have increased. NO
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced. Doesn't explain less profit reason. NO
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost. Provides an explanation of why profits might have reduced than previous years. Hence profits reduced because of these promotions and not because of operational costs. ANSWER
E
Which most seriously weakens the conclusion?
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years. NO
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced. Then maybe more people are using jets. NO
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced. It means airlines is operating efficiently and hence the profits should have increased. NO
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced. Doesn't explain less profit reason. NO
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost. Provides an explanation of why profits might have reduced than previous years. Hence profits reduced because of these promotions and not because of operational costs. ANSWER
E
conclusion is that the higher operational costs were responsible for lower profits, to weaken we can find alternate explanation of lower profits.
A) this strengthens, since if other airlines operating regional jets saw increase in profits, we can rule out industry-wide external factors.
B) this does not help explain the lower profits and whether it was due to higher operational costs. irrelevant.
C) jets have less flights but the operational cost of those lesser jet flights may or may not still be the reason behind lower profits. could go either way. we are not given what the operational cost of jets look like.
D) jets carry more people (more tickets sold) and fuel cost per person is less for jets, so kind of weakens the conclusion by implying that jets have lower fuel cost so that is not why profits are less. but conclusion is about operational cost and not just fuel cost. hence incorrect.
E) 35% of fares of jets sold in 2015 earned zero profit which gives a very valid reason behind lower profits in 2015, weakening the author's reasoning of higher operational cost being the factor behind lower profits. correct.
A) this strengthens, since if other airlines operating regional jets saw increase in profits, we can rule out industry-wide external factors.
B) this does not help explain the lower profits and whether it was due to higher operational costs. irrelevant.
C) jets have less flights but the operational cost of those lesser jet flights may or may not still be the reason behind lower profits. could go either way. we are not given what the operational cost of jets look like.
D) jets carry more people (more tickets sold) and fuel cost per person is less for jets, so kind of weakens the conclusion by implying that jets have lower fuel cost so that is not why profits are less. but conclusion is about operational cost and not just fuel cost. hence incorrect.
E) 35% of fares of jets sold in 2015 earned zero profit which gives a very valid reason behind lower profits in 2015, weakening the author's reasoning of higher operational cost being the factor behind lower profits. correct.
A. Incorrect- all other airline profits are irrelevant to the conclusion
B. Incorrect- does not provide any info on why profits would be lesser. In fact, if regional jets are more comfortable & reliable, people would be buying more fares and profits would likely increase.
C. Incorrect- if the number of flights decrease with twice as many passengers, operating costs would decrease as well (lesser flights, lower operating costs)
D. Incorrect- less fuel per person would indicate lower operating costs, not higher.
E. Correct- if a substantial amount of fares are at a discounted rate, this would explain why the profits have declined even with a higher number of passengers
B. Incorrect- does not provide any info on why profits would be lesser. In fact, if regional jets are more comfortable & reliable, people would be buying more fares and profits would likely increase.
C. Incorrect- if the number of flights decrease with twice as many passengers, operating costs would decrease as well (lesser flights, lower operating costs)
D. Incorrect- less fuel per person would indicate lower operating costs, not higher.
E. Correct- if a substantial amount of fares are at a discounted rate, this would explain why the profits have declined even with a higher number of passengers
Weaken question
The above Paradox are complete facts or truths, Chief conclusion is like a resolution that he chose for this paradox
he focuses on Jets Operational cost as the reason for the paradox
only Point E talks about money and cost, also it does weaken the chiefs claim, so is the answer
The above Paradox are complete facts or truths, Chief conclusion is like a resolution that he chose for this paradox
he focuses on Jets Operational cost as the reason for the paradox
only Point E talks about money and cost, also it does weaken the chiefs claim, so is the answer
Imo, D.
A- others had higher profits. okay. but what does it have to do with SunDog? OUT.
B- Passenger review will not contribute to operating cost or profits. If anything, it somewhat supports the conclusion. OUT.
C- Total number of flights reduced, but the operational cost of those limited flights can be even higher than the normal ones. OUT.
D- When fuel use decreases, the cost of operation decreases. While in conclusion it says higher. So it weakens it. CORRECT
E- Talks about only 35% of the seats. Not all. OUT.
A- others had higher profits. okay. but what does it have to do with SunDog? OUT.
B- Passenger review will not contribute to operating cost or profits. If anything, it somewhat supports the conclusion. OUT.
C- Total number of flights reduced, but the operational cost of those limited flights can be even higher than the normal ones. OUT.
D- When fuel use decreases, the cost of operation decreases. While in conclusion it says higher. So it weakens it. CORRECT
E- Talks about only 35% of the seats. Not all. OUT.
IMO E.
A - tells the market is good, so slightly strengthens the argument
B - does not address profit decline
C - reduction in flight = reduction in OC, strengthens the idea, so can't be a reason to weaken the statement
D - same as C
E - Correct; gives too direct link of why number of increased fares didn't convert to increased profit.
A - tells the market is good, so slightly strengthens the argument
B - does not address profit decline
C - reduction in flight = reduction in OC, strengthens the idea, so can't be a reason to weaken the statement
D - same as C
E - Correct; gives too direct link of why number of increased fares didn't convert to increased profit.
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Starting at the beginning of 2015, SunDog Airlines replaced its turboprop planes with regional jets for all routes longer than 300 miles. SunDog sold between 10 and 30 percent more fares in 2015 than in any of the previous five years, yet it recorded substantially lower profits for each quarter of 2015 than for the same quarter in any of the previous five years. SunDog’s chief executive concluded that the jets' higher operating costs were responsible for the decline in profits.
premise :
starting 2015 Sun DOg airlines replaces turboprop planes with regional jet for long routes > 300 miles...
price of fare was 10 to 30 % higher than in last 5 years..
lower profits reported for each quarter of 2015.. than in last 5 years..
Chief executive concluded that jets higher OP was responsible for decline in profits..
Which of the following, if true, most seriously weakens the chief executive’s conclusion?
weaken the conclusion type CR
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years.
the option does not weaken the conclusion with impact of other airlines ; incorrect option
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced.
this is an irrelevant option for the argument in discussion as point discussed is not weakener to conclusion l ; incorrect option
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced.
this is a strengthner to argument not a weakener ; in correct option
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced.
per passenger evaluation is not required to conclude on conclusion ; incorrect option
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost.
this is an alternate reason why operating profit was lower for company in 2015 ; correct option
OPTION E is correct
premise :
starting 2015 Sun DOg airlines replaces turboprop planes with regional jet for long routes > 300 miles...
price of fare was 10 to 30 % higher than in last 5 years..
lower profits reported for each quarter of 2015.. than in last 5 years..
Chief executive concluded that jets higher OP was responsible for decline in profits..
Which of the following, if true, most seriously weakens the chief executive’s conclusion?
weaken the conclusion type CR
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years.
the option does not weaken the conclusion with impact of other airlines ; incorrect option
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced.
this is an irrelevant option for the argument in discussion as point discussed is not weakener to conclusion l ; incorrect option
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced.
this is a strengthner to argument not a weakener ; in correct option
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced.
per passenger evaluation is not required to conclude on conclusion ; incorrect option
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost.
this is an alternate reason why operating profit was lower for company in 2015 ; correct option
OPTION E is correct
Sundog replaced its turbopop planes with jets. It sold 10% to 30% more but saw way less profits than prior years. CEO's conclusion = Jet's high operating costs are responsible.
Find weakener
A) Other airlines that operate jets saw higher profits. WE are not concerned with them. They cannot help strengthen or weaken CEO's argument. Wrong.
B) Passengers rated jet higher. Irrelevant.
C) D) E) are all weakeners IMO, we need to find the best one.
D says fuel costs are less but operating cost still may be higher - reject
C says no of jets reduced but total costs could still be higher
I choose E as it explains that 35% of tickets sold generated no profits as they were sold on promotional fares. This weakens that claim that its because of higher operating costs that profits fell.
Find weakener
A) Other airlines that operate jets saw higher profits. WE are not concerned with them. They cannot help strengthen or weaken CEO's argument. Wrong.
B) Passengers rated jet higher. Irrelevant.
C) D) E) are all weakeners IMO, we need to find the best one.
D says fuel costs are less but operating cost still may be higher - reject
C says no of jets reduced but total costs could still be higher
I choose E as it explains that 35% of tickets sold generated no profits as they were sold on promotional fares. This weakens that claim that its because of higher operating costs that profits fell.
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Stem analysis: The question says Sundog (SD) replaced Turbo planes (TP) with regional jets (RJ) in 2015. SD sold 10-30% more tickets in 2015 (vs last 5 years) but had substantially low profit each 2015 quarter (vs last 5 years). CEO says this was due to RJ being more operationally expensive.
here, more tickets sold is linked to higher profitability expectation. We need to find an option that targets this link and can act as an alternative explanation for profit reduction.
A. The profit of other airlines might be due to an increase in fare prices, or number of tickets sold or any other factor. This will not help us explain why SD's situation is what it is.
B. Customer feedback/preference is irrelevant and hence this statement is out of scope.
C. Reduction in number of price cannot be taken as basis for saying that the operational cost might have reduced. RJ might use substantially more fuel or require more maintenance to offset any cost saved due to reduction in number of flights. Cannot reliably present a reasoning.
D. Again, not a reliable explanation. What if the number of passengers is substantially higher and if the number of flights is same (vs TP) this would actually cost more than TP.
E. This can be an explanation. Almost 1/3 tickets sold did not yield any profit to SD and if I even assume that the costs remained same, the sales declined by 1/3. Hence there is a high chance that profits reduced due to reduction in sales and not increase in cost.
here, more tickets sold is linked to higher profitability expectation. We need to find an option that targets this link and can act as an alternative explanation for profit reduction.
A. The profit of other airlines might be due to an increase in fare prices, or number of tickets sold or any other factor. This will not help us explain why SD's situation is what it is.
B. Customer feedback/preference is irrelevant and hence this statement is out of scope.
C. Reduction in number of price cannot be taken as basis for saying that the operational cost might have reduced. RJ might use substantially more fuel or require more maintenance to offset any cost saved due to reduction in number of flights. Cannot reliably present a reasoning.
D. Again, not a reliable explanation. What if the number of passengers is substantially higher and if the number of flights is same (vs TP) this would actually cost more than TP.
E. This can be an explanation. Almost 1/3 tickets sold did not yield any profit to SD and if I even assume that the costs remained same, the sales declined by 1/3. Hence there is a high chance that profits reduced due to reduction in sales and not increase in cost.
Posts: 81
I did pre-thinking of the answer in this question but I could not find the answer I thought and found a better one.
In simple words - the revenue grew but the profits were lower. if we need to weaken CE's reasoning then we need to tell that operational cost must have been at par with turboprop planes or there may be another factor which have resulted in reduced profits
a) other's profit would not weaken this as the overall market revenue could have increased
b) ratings would not weaken it would only justify increased revenue of SunDog Airlines
c) there is a still chance of operational cost still being higher as I would have marked this if it would have said overall operation cost at par with turboprop planes
d) lesser fuel, I still found this equal to option C, lesser fuel does not necessarily mean overall operation cost at par with turboprop planes
e) i marked this as my answer because it gives us an alternate reason for the reduced profits. This makes us doubt Chief Executive's reason for higher operating cost and gives us other valid reason - marketing fees was higher and lower ticket fare which increased occupancy and increased revenue. CORRECT
In simple words - the revenue grew but the profits were lower. if we need to weaken CE's reasoning then we need to tell that operational cost must have been at par with turboprop planes or there may be another factor which have resulted in reduced profits
a) other's profit would not weaken this as the overall market revenue could have increased
b) ratings would not weaken it would only justify increased revenue of SunDog Airlines
c) there is a still chance of operational cost still being higher as I would have marked this if it would have said overall operation cost at par with turboprop planes
d) lesser fuel, I still found this equal to option C, lesser fuel does not necessarily mean overall operation cost at par with turboprop planes
e) i marked this as my answer because it gives us an alternate reason for the reduced profits. This makes us doubt Chief Executive's reason for higher operating cost and gives us other valid reason - marketing fees was higher and lower ticket fare which increased occupancy and increased revenue. CORRECT
IMO E
If 35% were promotional fares, then this is why even though more % were sold, they recorded less profit, and not because of operating cost high as the Chief mentioned- definitely a weakner
A-what other airlines faces is irrelevant
B-This says how passaengers would prefer regional jets and cannot suggest the reason of decline in profits - incorrect
C- it reduces the no of flights as same flight carries more no of pasaangers, doesnt mention how profit are declining though- incorrect
D- Using less fuel per person is not higher operating cost but doesnt tell why less profit
If 35% were promotional fares, then this is why even though more % were sold, they recorded less profit, and not because of operating cost high as the Chief mentioned- definitely a weakner
A-what other airlines faces is irrelevant
B-This says how passaengers would prefer regional jets and cannot suggest the reason of decline in profits - incorrect
C- it reduces the no of flights as same flight carries more no of pasaangers, doesnt mention how profit are declining though- incorrect
D- Using less fuel per person is not higher operating cost but doesnt tell why less profit
Bunuel
A. Other airlines are out of scope. We are concerned about Sundog airlines.
B. The passengers like the regional airlines. So what ? The profitability could still be impacted by the high operating costs.
C. Ok so Sundog is carrying more passengers. Great! But, can it still have high operating costs and low profits ? Yes. So this is irrelevant.
D. Fuel costs are low in regional airlines. But fuel cost is just one component of operating costs. There could be other costly components such as employee cost, maintainence etc.
E. Yup, this says that on 35% of the tickets that were sold there were 0 margins. They were sold purely at cost. This means that the reason profit was lower was because of lower revenue and not because of higher cost. Conclusion weakens.
IMO E
B. The passengers like the regional airlines. So what ? The profitability could still be impacted by the high operating costs.
C. Ok so Sundog is carrying more passengers. Great! But, can it still have high operating costs and low profits ? Yes. So this is irrelevant.
D. Fuel costs are low in regional airlines. But fuel cost is just one component of operating costs. There could be other costly components such as employee cost, maintainence etc.
E. Yup, this says that on 35% of the tickets that were sold there were 0 margins. They were sold purely at cost. This means that the reason profit was lower was because of lower revenue and not because of higher cost. Conclusion weakens.
IMO E
Bunuel
Kinshook
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Joined: 03 Jun 2019
Last visit: 04 Sep 2026
Posts: 6,129
Location: India
Schools: HBS '26 CBS '26 Wharton '26
GMAT 1: 690 Q50 V34
WE:Engineering (Transportation)
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Starting at the beginning of 2015, SunDog Airlines replaced its turboprop planes with regional jets for all routes longer than 300 miles.
SunDog sold between 10 and 30 percent more fares in 2015 than in any of the previous five years, yet it recorded substantially lower profits for each quarter of 2015 than for the same quarter in any of the previous five years.
SunDog’s chief executive concluded that the jets' higher operating costs were responsible for the decline in profits.
Which of the following, if true, most seriously weakens the chief executive’s conclusion?
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years.
Every airlines has different financials depending on several factors e.g. fares, routes, vacant seats etc. Therefore, even if other airlines that operate regional jets saw higher profits for 2015 than for any of the preceding five years, it is not necessary that the same may occur for SunDog Airlines.
Incorrect
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced.
While passengers preferences and liking have importance for airlines, they don't necessarily translate into higher profits or better financials for the airlines.
Incorrect
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced.
Even if regional jets carry twice as many passengers as did the turboprop planes that they replaced, and reduced the total number of flights it operates on its routes over 300 miles, it shows that efficiency was attempted but the efforts still resulted in lower profits but not necessarily because of increased operating costs.
Incorrect
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced.
Regional jets may use less fuel per person aboard to fly a given distance when full than did the turboprop planes that they replaced but still may result in higher fuel per person when running half-full or nearly empty resulting in higher operating costs and lower profits.
Incorrect
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost.
Approx 35% of the fares were promotional fares to promote usage of new regional jets at break-even prices for which airlines got no profits. Therefore, without increment in operating costs profits could have been lowered. Therefore, cheif executive's conclusion is weakened by the statement.
Correct
IMO E
SunDog sold between 10 and 30 percent more fares in 2015 than in any of the previous five years, yet it recorded substantially lower profits for each quarter of 2015 than for the same quarter in any of the previous five years.
SunDog’s chief executive concluded that the jets' higher operating costs were responsible for the decline in profits.
Which of the following, if true, most seriously weakens the chief executive’s conclusion?
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years.
Every airlines has different financials depending on several factors e.g. fares, routes, vacant seats etc. Therefore, even if other airlines that operate regional jets saw higher profits for 2015 than for any of the preceding five years, it is not necessary that the same may occur for SunDog Airlines.
Incorrect
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced.
While passengers preferences and liking have importance for airlines, they don't necessarily translate into higher profits or better financials for the airlines.
Incorrect
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced.
Even if regional jets carry twice as many passengers as did the turboprop planes that they replaced, and reduced the total number of flights it operates on its routes over 300 miles, it shows that efficiency was attempted but the efforts still resulted in lower profits but not necessarily because of increased operating costs.
Incorrect
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced.
Regional jets may use less fuel per person aboard to fly a given distance when full than did the turboprop planes that they replaced but still may result in higher fuel per person when running half-full or nearly empty resulting in higher operating costs and lower profits.
Incorrect
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost.
Approx 35% of the fares were promotional fares to promote usage of new regional jets at break-even prices for which airlines got no profits. Therefore, without increment in operating costs profits could have been lowered. Therefore, cheif executive's conclusion is weakened by the statement.
Correct
IMO E
A - good market condition, doesn't weaken
B - irrelevant
C & D - oc is decreasing with this logic, doesn't weaken
E - as the promotional fares didn't contribute to profits, directly weakens.
so best option is E
B - irrelevant
C & D - oc is decreasing with this logic, doesn't weaken
E - as the promotional fares didn't contribute to profits, directly weakens.
so best option is E
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