• Free Trial & Practice Exam
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• Get 300+ Practice Questions

Available with Beat the GMAT members only code

• Free Practice Test & Review
How would you score if you took the GMAT

Available with Beat the GMAT members only code

• Award-winning private GMAT tutoring
Register now and save up to $200 Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code Increase your profitability - Please rate this essay[URGENT] This topic has 0 member replies anand2212 Newbie | Next Rank: 10 Posts Joined 20 Jun 2016 Posted: 1 messages Increase your profitability - Please rate this essay[URGENT] Fri Jul 08, 2016 9:46 pm Group #1: Analysis of Argument The following was used as part of an internet advertising company's appeal to businesses: Furniture Depot employed our internet advertising company to help. Since then its sales increased by 10% over last year's totals. Furniture Depot's success demonstrates how using our internet services can increase your profitability. Describe how well reasoned you find this argument. In the discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the argument's conclusion. You may also address possible changes in the argument that would make it more logically sound, and what, if anything, would help you better evaluate its conclusion. The argument states that employing the internet services by the internet advertising company will increase the profitability . The conclusion is premised on the fact that increases in sales ,increases profitability . However, there are several assumptions that may not apply to the argument .For example, sales cannot be directly attributable to the profitablilty of the company . Also, the cost incurred to the company to employ these services is not mentioned . And finally, the factors affecting the 10% increase should be enlisted in detail . Firstly , profitability of the company is assessed after deducting the cost from revenue and dividing it by the total revenue of the company . Since we are not given any cost reflective for the sales , there is no plausible way to answer that there has been an increase in the profitability of the business . For example, the total revenue is$10000 and the cost associated with it are $5000. Hence the profit would be$5000 and the profitability would be 50% of the total revenue .

Secondly, the argument fails to explain the cost incurred to employ these services. Weighing the costs in relation to the benefits is a major factor for a company to consider the utility of the services . For example, if the cost are at $4000 and the increase in sales is$2000 then it would be frivolous to incur such an amount exceeding the revenue .

Lastly, there is a possibility that there could be other factors affecting the increase in sales over previous year , The argument fails to enlist the various factors affecting it . For example , a positive word of mouth could also result in an increase in sales or a wider awareness of the product . So, the argument is limited in its explanation regarding whether the increase was solely attributable to internet advertising services or any other medium .

In conclusion, while the argument tries to relate sales directly to profitability and praises the benefits to use the internet services , there are various objection to it pointed out in the above paragraphs . If the above points are responsibly answered the argument would be more compelling in its true sense.

Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!

Best Conversation Starters

1 lheiannie07 116 topics
2 LUANDATO 67 topics
3 swerve 66 topics
4 ardz24 61 topics
5 AAPL 59 topics
See More Top Beat The GMAT Members...

Most Active Experts

1 Scott@TargetTestPrep

Target Test Prep

213 posts
2 Brent@GMATPrepNow

GMAT Prep Now Teacher

177 posts
3 Jeff@TargetTestPrep

Target Test Prep

168 posts
4 Rich.C@EMPOWERgma...

EMPOWERgmat

133 posts
5 GMATGuruNY

The Princeton Review Teacher

126 posts
See More Top Beat The GMAT Experts