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crescendo85
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For people intending to give GMAT Prep please dont see this. Experts plz help.
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.
Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?
(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.
In original sentence B means that inventory with the manufacturer is not changing much (declined slightly) - > that means not much demand from the retailers (market)....hence increasing production should not help. Hence I think B is correct answer. If it was increased slightly, I would have been more comfortable though, but still I think inventory gives right picture of demand.
Please explain why B is wrong and would it make difference if I change B to
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has increased significantly the last year.
OR
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined significantly over the last year.
The official answer is E which appears ok as well. But honestly there are lot of assumptions here.
What if last year something negative happened to their advertising campaign and hence sales was bad, or some other factor which we dont know. Saying that increasing production will NOT increase sales because of E is not clear. Please explain.
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.
Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?
(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.
In original sentence B means that inventory with the manufacturer is not changing much (declined slightly) - > that means not much demand from the retailers (market)....hence increasing production should not help. Hence I think B is correct answer. If it was increased slightly, I would have been more comfortable though, but still I think inventory gives right picture of demand.
Please explain why B is wrong and would it make difference if I change B to
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has increased significantly the last year.
OR
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined significantly over the last year.
The official answer is E which appears ok as well. But honestly there are lot of assumptions here.
What if last year something negative happened to their advertising campaign and hence sales was bad, or some other factor which we dont know. Saying that increasing production will NOT increase sales because of E is not clear. Please explain.
