On Monday, Daisy’s Lemonade Stand sold lemonade at 20 cents per cup. The Lemon Shack sold lemonade at 30 cents per cup. At the end of the day, Daisy’s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.
The statements above best support which of the following assertions?
On Monday, Daisy’s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack.
The Lemon Shack sells higher quality lemonade than does Daisy’s Lemonade Stand.
On Monday, Daisy’s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses.
In general, lemonade consumers prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack.
The Lemon Shack would not increase its revenues by lowering its prices.
Target Test Prep is 20% off right now!
Use code FLASH20
Available with Beat the GMAT members only code
MORE DETAILS
Daisy’s Lemonade
This topic has expert replies
-
madhur_ahuja
- Master | Next Rank: 500 Posts
- Posts: 435
- Joined: Sat May 02, 2009 3:55 am
- Thanked: 17 times
-
vikram_k51
- Master | Next Rank: 500 Posts
- Posts: 208
- Joined: Sat Jan 31, 2009 11:32 am
- Location: Mumbai
- Thanked: 2 times
On Monday, Daisy’s Lemonade Stand sold lemonade at 20 cents per cup. The Lemon Shack sold lemonade at 30 cents per cup. At the end of the day, Daisy’s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.
The statements above best support which of the following assertions?
On Monday, Daisy’s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack.
The Lemon Shack sells higher quality lemonade than does Daisy’s Lemonade Stand.
On Monday, Daisy’s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses.
In general, lemonade consumers prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack.
The Lemon Shack would not increase its revenues by lowering its prices.
The statements above best support which of the following assertions?
On Monday, Daisy’s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack.
The Lemon Shack sells higher quality lemonade than does Daisy’s Lemonade Stand.
On Monday, Daisy’s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses.
In general, lemonade consumers prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack.
The Lemon Shack would not increase its revenues by lowering its prices.
-
arjunnattar
- Junior | Next Rank: 30 Posts
- Posts: 16
- Joined: Thu Oct 12, 2006 12:00 am
- Location: India
I thought it was D since Daisy showed same amount of revenue and Profit and it is possible only if more Lemonade is consumed in Daisy's than the Shack's.
Warm regs,
Arjun
Arjun
ur choosing ob B addresses 'identical revenues' but how does it justify for 'identical profit' unless u r sure of 'identical cost'vikram_k51 wrote:On Monday, Daisy’s Lemonade Stand sold lemonade at 20 cents per cup. The Lemon Shack sold lemonade at 30 cents per cup. At the end of the day, Daisy’s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.
The statements above best support which of the following assertions?
On Monday, Daisy’s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack.
The Lemon Shack sells higher quality lemonade than does Daisy’s Lemonade Stand.
On Monday, Daisy’s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses.
In general, lemonade consumers prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack.
The Lemon Shack would not increase its revenues by lowering its prices.
-
crackgmat007
- Legendary Member
- Posts: 882
- Joined: Fri Feb 20, 2009 2:57 pm
- Thanked: 15 times
- Followed by:1 members
- GMAT Score:690
-
pandeyvineet24
- Legendary Member
- Posts: 527
- Joined: Mon Jun 02, 2008 9:14 am
- Location: Atlanta
- Thanked: 17 times
IMO C
I think both B is out of scope it describes the quality of lemonade,argument never talks about the quality of lemonade
In i think it goes far too beyond, argument lacks enough data to make that assertion (may be there are only 3 customers for Daisy and 2 for lemonade)
Madhur, Please post OA ?
I think both B is out of scope it describes the quality of lemonade,argument never talks about the quality of lemonade
In i think it goes far too beyond, argument lacks enough data to make that assertion (may be there are only 3 customers for Daisy and 2 for lemonade)
Madhur, Please post OA ?
-
madhur_ahuja
- Master | Next Rank: 500 Posts
- Posts: 435
- Joined: Sat May 02, 2009 3:55 am
- Thanked: 17 times
-
eaakbari
- Master | Next Rank: 500 Posts
- Posts: 435
- Joined: Mon Mar 15, 2010 6:15 am
- Thanked: 32 times
- Followed by:1 members
madhur_ahuja wrote:On Monday, Daisy�s Lemonade Stand sold lemonade at 20 cents per cup. The Lemon Shack sold lemonade at 30 cents per cup. At the end of the day, Daisy�s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.
The statements above best support which of the following assertions?
On Monday, Daisy�s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack.
The Lemon Shack sells higher quality lemonade than does Daisy�s Lemonade Stand.
On Monday, Daisy�s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses.
In general, lemonade consumers prefer the lemonade at Daisy�s Lemonade Stand to the Lemonade at the Lemon Shack.
The Lemon Shack would not increase its revenues by lowering its prices.
Experts,
Isn't this question ill-framed and vague.
Clearly D is a good answer choice
It's fair to assume that since customers prefer Daisy over Shack, Daisy would sell more cups.
And since Daisy sells at 20cents & Shack at 30cents, we need to show that daisy sold more to make the revenue equal.
Choice C can also be substantiated but is weaker as the costs being the same, and selling the same number of cups, Shack > Daisy.
M thirsty now.
Views?
Whether you think you can or can't, you're right.
- Henry Ford
- Henry Ford
