Surveys reveal that the vast majority of hotel guests in the United States resent the high prices of the items in the mini-bars in their hotel rooms.These guests would prefer to have an empty refrigerator in their rooms in order to have space to put their own food and beverages, although a large percentage of these guests would still make at least one purchase from their in-room mini-bar. After analyzing the results of the study, the management of Hotel T decided that it would be more profitable to eliminate the mini-bar and install empty refrigerators in each room.
Which of the following, if true, would support Hotel T's plan to increase profitability by eliminating in room mini-bars in favor of empty refrigerators?
A) There is currently some space available in Hotel T's in-room mini-bars for guests to put their own items.
B) Hotel T is located in the United States.
C) Some guests of Hotel T do not make any purchases from their in-room mini-bars.
D) The money that Hotel T makes from the mini-bar purchases of its guests is less than the money that Hotel T loses from discarding mini-bar items that have not sold by their expiration dates.
E) It will cost Hotel T less money to maintain empty refrigerators in its guest rooms than to maintain stocked mini-bars in those rooms.
OA: D.... why is the answer not B? can someone pls explain.. thanks!
Hotel T
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- rohit_gmat
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IMO D
thts the only one that directly gives evidence of how eliminating the mini bar can increase profits -> becoz the loss from the discarded items exceeds the profits made from the sales
thts the only one that directly gives evidence of how eliminating the mini bar can increase profits -> becoz the loss from the discarded items exceeds the profits made from the sales
- turbo jet
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Was tossing between D and E
D option tells us that that negative profit (loss) is made because of mini bars.(Profit=Sales Revenue - Cost) Hence doing away with mini bars will prevent loss and hence increase profitability.
E option talks only about cost. Hence it is slightly ambiguous to predict profitability.So rejected.
D option tells us that that negative profit (loss) is made because of mini bars.(Profit=Sales Revenue - Cost) Hence doing away with mini bars will prevent loss and hence increase profitability.
E option talks only about cost. Hence it is slightly ambiguous to predict profitability.So rejected.
Life is Tom; I am Jerry
- tuanquang269
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B is totally wrong because it is out of scope. We need choice that mention money here (because the conclusion talk about profit). Only D and E are the contenders. At the first time, I choose E because D is quite hard to understand. After rereading 2 twice. I choose D because the loose from maintaining mini bar is larger the earning from selling items. E is also strengthen, but not power like D.