Paper Print

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Paper Print

by EricKryk » Mon Dec 09, 2013 4:30 pm
Paper&Print is a chain of British stores selling magazines, books, and stationery products. In Britain, magazines' retail prices are set by publishers, and the retailer's share of a magazine's retail price is 25 percent. Since Paper&Print's margin on books and stationery products is much higher, the chain's management plans to devote more of its stores' shelf space to books and stationery products and reduce the number of magazine titles that its stores carry.

Which of the following, if true, most strongly argues that the plan, if put into effect, will not increase Paper&Print's profits?

(A) Recently magazine publishers, seeking to increase share in competitive sectors of the market, have been competitively cutting the retail prices of some of the largest circulation magazines.

(B) In market research surveys, few consumers identify Paper&Print as a book or stationery store but many recognize and value the broad range of magazines it carries.

(C) The publisher's share of a magazine's retail price is 50 percent, and the publisher also retains all of the magazine's advertising revenue.

(D) Consumers who subscribe to a magazine generally pay less per issue than they would if they bought the magazine through a retail outlet such as Paper&Print.

(E) some of Paper&Print's locations are in small towns and represent the only retail outlet for books within the community
Source: — Critical Reasoning |

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by Patrick_GMATFix » Mon Dec 09, 2013 4:49 pm
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by Abhishek009 » Tue Dec 10, 2013 7:16 am
EricKryk wrote:Paper&Print is a chain of British stores selling magazines, books, and stationery products. In Britain, magazines' retail prices are set by publishers, and the retailer's share of a magazine's retail price is 25 percent. Since Paper&Print's margin on books and stationery products is much higher, the chain's management plans to devote more of its stores' shelf space to books and stationery products and reduce the number of magazine titles that its stores carry.
Paper & Print - Seller of books , magazines and stationery products.

Britain - Magazine prices are set by publishers , retailers get 25% of Retail Price as profit.

Margin on books and stationery products > Margin on Magazines , so space for books and stationery products must be increased.


Which of the following, if true, most strongly argues that the plan, if put into effect, will not increase Paper&Print's profits?

We need to weaken the argument.

(A)Recently magazine publishers, seeking to increase share in competitive sectors of the market, have been competitively cutting the retail prices of some of the largest circulation magazines.

Cutting retail price ok , what if the profit margin is increased , can it provide the same results as desired by the author ..

Here we have to take something more into assumption , ie , either profit margin will remain the same or it will be decreased by the Publishers...

So we have to take something more into consideration , hence we can negate this option...

(B) In market research surveys, few consumers identify Paper&Print as a book or stationery store but many recognize and value the broad range of magazines it carries.

Suggests people prefer ( Are more interested ) to buy magazines hence the said strategy won't be effective as suggested by the author...

Good one let's keep it aside...

(C) The publisher's share of a magazine's retail price is 50 percent, and the publisher also retains all of the magazine's advertising revenue.

Out of scope...

(D) Consumers who subscribe to a magazine generally pay less per issue than they would if they bought the magazine through a retail outlet such as Paper&Print.

Price is not the consideration , so out of scope...

(E)some of Paper&Print's locations are in small towns and represent the only retail outlet for books within the community

Out of scope...


Hence to me (B) looks better...

What's the OA ?
Abhishek