An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special
discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent.
Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough
to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort
of discount for the fall quarter.
Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful
performance of the summer quarter?
60
(A) In general, a distributor's orders for the summer quarter are no higher than those for the spring quarter.
(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and
radio advertising in those distributors' sales areas.
(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were
unusually low a year earlier.
(D) The distributors how qualified for the manufacturer's special discount were free to decide how much of that
discount to pass on to their own customers.
(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.
OA E
Explain why C is incorrect. If the distributors who can qualify for the new fall discount had a unusual low sales last year.. means they will have a better sales this year.. there is no need for the discount.. Even without the discount there is going to be increase in sales
discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent.
Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough
to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort
of discount for the fall quarter.
Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful
performance of the summer quarter?
60
(A) In general, a distributor's orders for the summer quarter are no higher than those for the spring quarter.
(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and
radio advertising in those distributors' sales areas.
(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were
unusually low a year earlier.
(D) The distributors how qualified for the manufacturer's special discount were free to decide how much of that
discount to pass on to their own customers.
(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.
OA E
Explain why C is incorrect. If the distributors who can qualify for the new fall discount had a unusual low sales last year.. means they will have a better sales this year.. there is no need for the discount.. Even without the discount there is going to be increase in sales
Last edited by agarwalva on Tue May 22, 2012 7:11 pm, edited 1 time in total.
