Sales of processed meat products by United States grocery

Question

Sales of processed meat products by United States grocery chains for 1995 showed an increase of about five percent over the 1994 level. However, this increase is actually following a downward sales trend since 1991, when sales of processed meat products increased 16.4 percent over the previous year. Clearly, the 25 percent discount offered this year by processed meat manufacturers has failed to generate more sales of processed meat. 

The conclusion of the argument above cannot be true unless which of the following is true?

 
(A) Consumer sales usually increase in direct proportion to the decrease in the wholesale price paid by grocery chains.
(B) Due to market saturation, sales of processed meat products in 1995 could not increase by more than five and a half percent.
(C) Had manufacturers discounted the wholesale price by more than 25 percent, grocery chains would have increased marketing expenditures for processed meat products.
(D) Sales of processed meat products would not have decreased if the manufacturers had not substantially reduced wholesale prices.
(E) Discounts in the wholesale price are rarely passed on by grocery chains to the consumers.

Antmavel · Answer

(A) Consumer sales usually increase in direct proportion to the decrease in the wholesale price paid by grocery chains.
ok for me. If price goes down, sales should go up. This time its not the case, even with the discount, there are more sales but the growth is lower. So we can say that the discount has failed to generate more sales.

(B) Due to market saturation, sales of processed meat products in 1995 could not increase by more than five and a half percent.
opposite of the conclusion

(C) Had manufacturers discounted the wholesale price by more than 25 percent, grocery chains would have increased marketing expenditures for processed meat products.
Means that if the discount was bigger, the final price for consumers would have been bigger but no data about sales forecast then.

(D) Sales of processed meat products would not have decreased if the manufacturers had not substantially reduced wholesale prices.
If no price reduction, the sales won't decrease. However we don't know what would happen with a price reduction. It is not said that the sales would increase...

(E) Discounts in the wholesale price are rarely passed on by grocery chains to the consumers.
Not easy this one :roll:

Means that the discount is only for wholesalers but we don't know about the consequences. Maybe the discount is not passed on the price but on the quality of the grocery, so normally there would be more customer so maybe more sales too. We have no data about sales here...

I hesitated betwen A and E
A for me

Means that the discount is only for wholesalers but we don't know about the consequences. Maybe the discount is not passed on the price but on the quality of the grocery, so normally there would be more customer so maybe more sales too. We have no data about sales here... I hesitated betwen A and E A for me

gamjatang · Answer

I agree with Antmavel.

Let's have a negation test.

(A) Consumer sales increase in proportion to the decrease in the wholesale price.

(A') Consumer sales does not increase in proportion to the decrease in the wholesale price.

If, as (A') says, the discount does not affect the consumer sales, we cannot say that it is the discount that failed to generate more sales.

Discount is not guilty

GMATT73 · Answer

Sorry, but OA is D.

CORRECT ANSWER: D
YOUR LATEST ANSWER: D 
Explanation: 
ID Question Type and Task
Something that the argument requires to prove is truth is an assumptions, thus this can be identified as a Identify the Assumption Question. The task is to find the assumption(s). 

Read the Argument and Extract Necessary Information: 
The argument states that since there not an increase above the 1991 level that the discount "failed to generate more sales," however this assumes that there were not a small increase in sales or an increase. A different way to state the assumption is that only an increase above the 1991 level indicates the generation of more sales. 

Formulate an Answer to the Question
We have already done so, since the assumption is the answer. 

Eliminate Answer Choices: 
(A) Not assumed. Typical trends do not necessarily reflect on this particular situation. Additiionally, this choice would weaken the argument that the manufacture failed to generate sales, since if this situation followed the usual trend sales would have increased.

(B) Not assumed. This merely comfirms that the meat producers achieved the maximum possible sales increase. The argument made no assumptions about whether the maximum was achieved, the assumptions related to whether there was any increase in sales.

(C) Not assumed.The argument does not mention any hypothetical situations and does not assume anything about topics that are neither mentioned nor implied.

(D) Keep. This is an assumption since the argument states that there was no greater sales since there was not an increase in percent, this choice points out there could have been greater sales without an increase in percents because those sales maintained the status quo (a fact that the argument assumes is not the case).

(E) Not assumed. The argument does not mention what is passed on by chains and does not assume anything about topics that are neither mentioned nor implied.

Antmavel · Answer

Matt,

Are you sure that you've copied the sentence correctly ?
(D) Sales of processed meat products would not have decreased if the manufacturers had  not  substantially reduced wholesale prices.

are you sure there is the word "not" there ?
I could understand D if there wasn't "not" but at this time I still try to get it

gamjatang · Answer

(D) Sales of processed meat products would not have decreased if the manufacturers had not substantially reduced wholesale prices.

(D') Sales of processed meat products would have decreased if the manufacturers had not substantially reduced wholesale prices.

When we negate (D), it strengthens the conclusion.

I can't get it. Why is it (D)?

ywilfred · Answer

Premise:
1) Sales of processed meat by US grocery chains: 1995 up 5% over 1994
2) However increase is following a downward sales trend since 1991
3) 1991: sales up 16.4% over 1990

Conclusion: 25% disount offered this year by processed meat manufacturers has failed to generate more sales of processed meat

(A) Consumer sales usually increase in direct proportion to the decrease in the wholesale price paid by grocery chains. 
- If consumer sales increase in direct proportion to the decrease in wholesale price paid by grocery chains, then surly the 25% discount offered by processed meat manufacturers would have generate a slight improvement in terms of consumer sales. So (A) is out.

(B) Due to market saturation, sales of processed meat products in 1995 could not increase by more than five and a half percent. 
- This is really not important. The fact it can't increase by more than 5.5% points doesn't explain why 25% discounts are not attractive to generate mores sales. The sales could still increase, just that it cannot break through the 5.5% limit.

(C) Had manufacturers discounted the wholesale price by more than 25 percent, grocery chains would have increased marketing expenditures for processed meat products. 
- Out of scope as we are not interested in the expenditures of the grocery chains, but their sales performance

(D) Sales of processed meat products would not have decreased if the manufacturers had not substantially reduced wholesale prices. 
- This choice tells us discounts has nothing to do with sales of processed meat products. In anothers, it doesn't matter if you give 25% or even 100% discount, sales will simply not improve.

(E) Discounts in the wholesale price are rarely passed on by grocery chains to the consumers.
- We don't know the effect so we can't tell

I go with D.

Antmavel · Answer

got it now 

however the tense is very strange, I felt like the meaning was quite different. The way this answer has been written is not so clear0

it sounds like they've actually reduced the price in the past and then the sales went down. I agree it sounds illogical. But look at the sentence again. Anyway, ok for OA.

Sales of processed meat products by United States grocery

Prep Toolkit

Top 5 GMAT Debrief Videos

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

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards