The Smithtown Theatre, which stages old plays, has announced

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The Smithtown Theatre, which stages old plays, has announced an expansion that will double its capacity along with its operating costs. The theatre is only slightly profitable at present. In addition, all of the current customers live in Smithtown, and the population of the town is not expected to increase in the next several years. Thus, the expansion of the Smithtown Theatre will prove unprofitable.

Which of the following, if true, would most seriously weaken the argument?

(A) A large movie chain plans to open a new multiplex location in Smithtown later this year.
(B) Concession sales in the Smithtown Theatre comprise a substantial proportion of the theatre's revenues.
(C) Many recent arrivals to Smithtown are students that are less likely to attend the Smithtown Theatre than are older residents.
(D) The expansion would allow the Smithtown Theatre to stage larger, more popular shows that will attract customers from neighboring towns.
(E) The Board of the Smithtown Theatre often solicits input from residents of the town when choosing which shows to stage.

OA D

Source: Manhattan GMAT
Source: — Critical Reasoning |

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by deloitte247 » Sun Jun 16, 2019 1:05 pm

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Option A:- Incorrect
There is no movie chain introduced in the argument above; the only information provided was the existing theatre and their new plans. Hence no relationship can be established between and the original argument.

Option B:- Incorrect
There is no feature of concession sales. Also, there is a reference to the theatre slightly profitable; we do not know of any activity that contributes to their revenue.

Option C:- Incorrect
The argument did not mention the occupation of the inhabitants of Smithtown. So, the effect of this information on their profit can't be determined.

Option D:- correct
We can infer that the new expansion plan of the theatre in terms of space and operating procedures, updates on recent and more popular shows will bring them to limelight both far and near. These new features will attract more customers to patronise them both from Smithtown and Neighboring towns. It is an exact opposite of the argument and hence makes the option correct.

Option E:- Incorrect
This information is not traceable from the argument, hence it remains irrelevant.