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OG: Manufacturers of mechanical pencils make most of their profit

Expert replies
by AbeNeedsAnswers » Sat May 16, 2020 7:26 pm
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Manufacturers of mechanical pencils make most of their profit on pencil leads rather than on the pencils themselves. The Write Company, which cannot sell its leads as cheaply as other manufacturers can, plans to alter the design of its mechanical pencil so that it will accept only a newly designed Write Company lead, which will be sold at the same price as the Write Company’s current lead.

Which of the following, if true, most strongly supports the Write Company’s projection that its plan will lead to an increase in its sales of pencil leads?

A. The new Write Company pencil will be introduced at a price higher than the price the Write Company charges for its current model.
B. In the foreseeable future, manufacturers of mechanical pencils will probably have to raise the prices they charge for mechanical pencils.
C. The newly designed Write Company lead will cost somewhat more to manufacture than the Write Company’s current lead does.
D. A rival manufacturer recently announced similar plans to introduce a mechanical pencil that would accept only the leads produced by that manufacturer.
E. In extensive test marketing, mechanical-pencil users found the new Write Company pencil markedly superior to other mechanical pencils they had used.

E
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Source: — Critical Reasoning |

What option provides more truth information to justify the argument?

Argument: the Write Company's assertion that their plan will lead to an increase in its sales of pencil leads.

Let's analyze each answer choice carefully for the one that is best fit to support the argument.

Option A - Incorrect
This answer is wrong and not provide enough relevant information to the argument. From the passage, Write Company's pencil leads are more expensive than other manufacturers', but we do not know whether their pencils are less or more expensive than the average price.

Option B - Incorrect
This answer choice focuses more on annual sales of all mechanical pencils and not Write company sales. So, therefore, it is incorrect because we are not concerned about this.

Option C - Incorrect
According to the passage, new leads will be sold at the same price as the Write Company's current lead. So, this answer choice claim is not relevant to potential sales increment. Hence, it is wrong

Option D - Incorrect
This choice of answer only focuses on the rivals manufacturers, which their impact on the Write Company's sales is on an assumption of whether they can impact it or not.

Option E - Correct
This information on marketing tests aligns strongly with supporting Write Company's project of the success of its new plan. Therefore, this answer choice is wrong!
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