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# Why is E a better choice than C?

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Manager
Joined: 29 Aug 2007
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Why is E a better choice than C? [#permalink]

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08 Sep 2007, 09:07
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, mammoth industries plans to expand production of its own model of telephone , while continuing its already very extensive advertising of the product.

Which of the following, if true provides most support for the view that mammoth industries cannot increase its sales by telephones by adopting the plan outlined above

(a) although it sells all the telphones that it produces, Mammoth industries share of all telphone sales has declined over the last year

(b) Mammoth industries average inventory of telephones awaiting shipment to retailers has declined significantly in the past years

(c) advertising has made the brand name of Mammoth industries widely known, but few consumers know that Mammoth industries own the world

(d) Mammoth industries telephone is one of three brands of telephone that have together account for the bulk of the last years increase in sales

(e) Desplite a slight decline in the retail price, sales of mammoth industries's telephones have falles in the last year.
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Manager
Status: Post MBA, working in the area of Development Finance
Joined: 09 Oct 2006
Posts: 169
Location: Africa
Followers: 1

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Re: Why is E a better choice than C? [#permalink]

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08 Sep 2007, 10:20
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Choice E states that 'desplite a slight decline in the retail price, sales of mammoth industries's telephones have fallen in the last year'. Sale of any product is suppose to rise with the fall in price. This is clearly not happening. Additionally, the sales of mammoth industries's telephones have come down when the "Sales of telephones have increased dramatically over the last year".
This clearly makes the Choice E the clearest explanation why mammoth industries cannot increase its sales of telephones by adopting the plan outlined here.

beatgmat wrote:
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, mammoth industries plans to expand production of its own model of telephone , while continuing its already very extensive advertising of the product.

Which of the following, if true provides most support for the view that mammoth industries cannot increase its sales by telephones by adopting the plan outlined above

(a) although it sells all the telphones that it produces, Mammoth industries share of all telphone sales has declined over the last year

(b) Mammoth industries average inventory of telephones awaiting shipment to retailers has declined significantly in the past years

(c) advertising has made the brand name of Mammoth industries widely known, but few consumers know that Mammoth industries own the world

(d) Mammoth industries telephone is one of three brands of telephone that have together account for the bulk of the last years increase in sales

(e) Desplite a slight decline in the retail price, sales of mammoth industries's telephones have falles in the last year.
Re: Why is E a better choice than C?   [#permalink] 08 Sep 2007, 10:20
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# Why is E a better choice than C?

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