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Expert replies
by gmatwinner » Mon Dec 24, 2018 4:03 am
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TurboGo has come up with an innovative design for its miniature toy cars because it cannot compromise on the price of its batteries to make them as cheap as other such batteries in the market. Since the sales of these batteries generate the most profits for these toy car manufacturers, TurboGo has decided to modify the design of its cars such that the cars can be fitted only with special miniature sized batteries newly designed by TurboGo itself. These newly designed batteries will not be sold at a price lower than TurboGo’s current battery.
Which of the following statements best supports the assertion that TurboGo’s plan will lead to an increase in the company’s revenue from the sales of miniature toy cars?

A
School kids – the group that is most likely to indulge in playing with toy cars – are likely to spend as less as possible on purchasing these cars since they have to shell out their pocket money.

B
Extensive research is being conducted into testing the feasibility of technologies that may reduce the manufacturing costs of these batteries.

C
The pre-launch survey ratings show that the visual appeal and extra durability of TurboGo’s newly designed miniatures, the two crucial parameters for the buyers of such toys, make it the most sought-after toy in the market.

D
Technology boom is expected to bring about a 400% increase in the production of miniature toy cars across the world.

E
If sales of miniature toy cars increase as expected, TurboGo will amass enough profits to double its production capacity, thereby giving itself the chance to boost its sales even further.
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Source: — Critical Reasoning |

by deloitte247 » Sat Jan 05, 2019 5:35 pm
option A:- Incorrect
School kids playing with toy cars is not the topic of discussion we are talking about Turbogo innovative design and how it improved their market sales.

option B:- Incorrect
Extensive research and manufacturing cost were not considered or talked, however they may exist but as far as this question is concerned , it does not concern or support the assertion.

option C:- Incorrect
Survey ratings and durability are not assertive statement to backup the Turbogo plans to increase the company's revenue

option D:- Incorrect
400% is hypothetical and it is subject to questioning. It is not an assertive statement.

option E :- correct
The statement in this option is logically correct, points and give assertive mentions to how Turbogo innovative plans will lead to an increase in revenue
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