Hotel T

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Hotel T

by riteshbindal » Fri Aug 21, 2009 12:57 pm
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 after discussion
Last edited by riteshbindal on Fri Aug 21, 2009 6:27 pm, edited 1 time in total.

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by hmboy17 » Fri Aug 21, 2009 3:22 pm
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.
:: No relation with profitability

B. Hotel T is located in the United States. :: Does not really matter

C. Some guests of Hotel T do not make any purchases from their in-room mini-bars. :: Even if they do not purchase any thing and hotel will remove all the mini bar still it does not lead to any profitability.

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.
Is the correct answer accordingly to me, as this talks about that by doing that they will save money as expired products are more costly then purchase. So finally you see some profitability

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.:: This is tempting to me. But I see problem with it for example even maintaining empty refrigerators are cheaper then Mini bar still it does not answer that fact if guest want to use Mini Bar. The correct answer will focus on the fact that the income coming from mini bar is very less and then it's maintenance or so...

OA pls

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by riteshbindal » Fri Aug 21, 2009 6:28 pm
Sorry... The question was not complete. I hav updated the question. Please have another look at it.

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by arorag » Fri Aug 21, 2009 7:08 pm
it should be D

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Re: Hotel T

by gmatmachoman » Fri Aug 21, 2009 8:13 pm
riteshbindal wrote: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.

OUT OF SCOPE

B. Hotel T is located in the United States.

WHO CARES????


C. Some guests of Hotel T do not make any purchases from their in-room mini-bars.

OH REALLY!!!

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.

NO MENTION ABOUT REFERIGERATOR..OUT OF SCOPE

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.

SMART EXPLANATION....U R STRENGTHENING THE ARGUMENT...

OA after discussion

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Choice D

by here2win » Sat Aug 22, 2009 1:07 am
A, B and C out of scope.

D - It says the Hotel T incurs loss by stocking up goods in the minibar.

E - It suggests the cost of maintaining but does not say if the hotel makes enough profit from the sales to equate the cost of maintaining the stocked mini bars.

Hence I choose D.

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by vikram_k51 » Sat Aug 22, 2009 9:09 am
D and E are quite close.Will go with D.

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by riteshbindal » Sat Aug 22, 2009 12:04 pm
OA is D

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by kris77 » Sun May 15, 2016 3:53 pm
I still feel D should be the answer.