Diomedes Motors has just decided to start using Rapilux

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Diomedes Motors has just decided to start using Rapilux Tires on most models of its new cars. The tires cost the same as the previous tires, and the change in tires will not change the sticker price of any car, nor will it change the profit on the sale of any particular car. Nevertheless, the CEO of Diomedes Motors expects this change in tires to increase Diomedes' profits in the coming year.

Which of the following, if true, provides the best reason for the expectation?

A) The new Rapilux Tires facilitate loading the new cars onto the trucks that deliver them to the Diomedes showroom.
B) The change to Rapilux Tires in most Diomedes models moves those models to the highest safety rating category; several national consumer advocacy groups give focused advertising to cars in this category.
C) Since Diomedes has replaced the tires on only some of its models, it can continue to accommodate car buyers who prefer the older tire type.
D) Few car buyers are likely to decide against buying a Diomedes Motors model simply because it now comes with Rapilux Tires.
E) Some of the tires previously used on these particular Diomedes models are being phased out by those tire manufacturers, and would have to be replaced anyway, and no tire that would fit these Diomedes Models is any cheaper than the Rapilux Tires chosen.

The OA is B

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by deloitte247 » Sat Jul 06, 2019 12:33 am

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We need to find a reason why the Diomedes motor will make profit against all odds.

Premise: Diomedes motor has just decided to start using Rapilux Tires on most models of its new cars.

Explanation: The previous and new Tires in question here are of the same price and will not have any additional profit.

Option A - Incorrect
This is not a logical reason to effect the increase in profit of the Diomedes motors.

Option B - Correct
If these cars are being advertised, it means more people will know about it and there will be increase in sales which will accumulate to more profit.

Option C - Incorrect
The tires prices are the same. So, this cannot explain why there will be increase in profits.

Option D - Incorrect
If this is true, there will be decrease in sales and there will be no increase in profits.

Option E - Incorrect
This only shows the need for the Rapilux Tires. It does not provide a reason for increase in profits.