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A successful clothing department store

This topic has 1 expert reply and 0 member replies

A successful clothing department store

Post Sun Oct 29, 2017 6:50 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    A successful clothing department store, in a central downtown location of a certain city, is of a limited size and has grown so much over the past year that it needs to expand. There are a few other slightly larger available retails lots in the downtown regions for sale, but the prices per square foot are quite high. The management finds that cost per square foot of lots in a suburb a few miles from downtown is almost half of that in the downtown region, so they plan to relocate there to save costs.

    Which of the following, if true, most seriously undermines this plan?

    A) The store will have to adapt to the building codes of the suburb, which may not be the same as the city.
    B) The lot for the suburb location will require a sprawling parking lot.
    C) Consumers from the city who do not own cars will have to pay bus fare to commute to this store now.
    D) Almost all of the store's other locations, in other metropolitan regions throughout the state, are in downtown areas; very few are in suburbs.
    E) Some of the available downtown locations, though only a few blocks away, would be closest to entirely different bus and subway lines.

    Why Option A isn't the correct option?

    OA B

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    Post Fri Nov 03, 2017 7:52 am
    The conclusion: Relocating to the suburbs will save costs.

    The evidence: The cost per square foot in the suburb is half of the cost per square foot in the downtown region.

    The assumption: The store will not have to purchase a much greater lot in the suburb. Even though the cost per foot is cheaper in the suburb, if the store has to purchase a much greater lot, the savings could be lost. The cost could actually be greater in the suburbs.

    Choice B goes after this assumption. If the store owners need to buy a large parking lot, their plan to save money with the move will be weakened.

    You've asked about Choice A. Will adapting to new codes cost money? Can't tell from this choice. Therefore, this choice does not weaken the conclusion. They could adapt the other new codes and still save costs.

    I'm available if you'd like any follow up.

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