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Marketing Analyst: Traditionally, introducing a new consumer product contributes to the diversity of a company’s product

Expert replies
by BTGmoderatorDC » Sun Nov 15, 2020 5:21 pm

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D

E

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Difficulty

Marketing Analyst: Traditionally, introducing a new consumer product contributes to the diversity of a company’s product mix and results in an overall increase in revenues and profits. However, our launch of a new brand of soft drinks, Cool Breeze, planned for the end of this fiscal year, will almost certainly reduce rather than increase the company’s profits. Since we already offer a line of chilled refreshments that are very similar to Cool Breeze, the launch of the new drink is likely to cannibalize our current sales rather than attract new customers. Additionally, since the costs of producing Cool Breeze are higher than those of the other chilled refreshments, a large part of our current sales will be replaced with lower-margin revenues.

In the argument above, which of the following statements best describes the role played by each portion in boldface?

(A) The first is a pattern of cause and effect that the marketing analyst predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.

(B) The first is a generalization that the marketing analyst accepts as true; the second is a consequence that follows from that generalization.

(C) The first acknowledges a consideration against the main conclusion of the marketing analyst; the second is that conclusion.

(D) The first is a pattern of cause and effect that the marketing analyst predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.

(E) The first is evidence that the marketing analyst provides in support of a certain prediction; the second is that prediction.


OA D

Source: Manhattan Prep
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Source: — Critical Reasoning |