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A car wash service has decided to discontinue its repeat

Expert replies
by BTGmoderatorDC » Tue Aug 21, 2018 3:17 pm

Timer

00:00

Answers

A

B

C

D

E

Stats

Difficulty

A car wash service has decided to discontinue its repeat customer coupons wherein customers who purchase 5 car washes get a 6th car wash for free. This is a smart move for the car wash service, because it must pay its workers for every car washed. Because the coupons forced the car wash service to give away numerous free car washes, the repeat customer coupons caused the company's profits to decline.

Which of the following is a reason the argument is most vulnerable to criticism?

(A) The argument ignores the fact that another customer coupon initiative could take the place of this one.
(B) The author neglects to take into account whether the profit earned by the company during the coupons initiative was greater than its costs.
(C) The argument mistakenly believes the operating costs of the car wash service can be adjusted by removing the coupon program.
(D) The author fails to consider the fact that the car wash service may be exaggerating the number of free car washes it was forced to give out.
(E) The argument overlooks potential rewards from the customer coupons initiative while focusing only on its costs.

OA E

Source: Veritas Prep
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Source: — Critical Reasoning |

by deloitte247 » Thu Aug 23, 2018 12:27 pm
We have to be very calm in analyzing the options in order to get the best of the options to serve as the answer to this question.

Option A- Incorrect
We noticed that in as much as some other customer coupon could replace the one currently been operated, the operators have decided to stop this one because it's affecting their account balance sheet.

Option B- Incorrect
To agree with the author, we have to agree they have set a profit-target which has started declining as a result of the coupon initiative. No organisation wants to operate below set-standards and that's what's playing out here

Option C- Incorrect
It is not mistake to believe the coupon initiative is the cause for the downward profit margin. It is only logical because we could reason that before the initiative was introduced, what's their operating costs relative to their profit margin? So, it is assume such

Option D- Incorrect
It would be wrong to decide on what the author means based on our own ''assumption''. Rather, facts would have been merciful on the author

Option E- Correct
The patronage must have increased significantly although it's effect is such that the company would have to pay its workers for every unit of car being washed
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