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Popcorn sales

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Popcorn sales

by annakool1009 » Mon Aug 04, 2008 2:39 am
In January of last year the Moviemania chain of movie theaters started propping its popcorn in canola oil, instead of the less healthful coconut oil that it had been using until then. Now Moviemania is planning to switch back, saying that the change has hurt popcorn sales. That claim is false, however, since according to Moviemania’s own sales figures, Moviemania sold 5 percent more popcorn last year than in the previous year.

Which of the following, if true, most strongly supports the argument against Moviemania’s claim?

A. Total sales of all refreshments at Moviemania’s movie theaters increased by less than 5 percent last year.

B. Moviemania makes more money on food and beverages sold at its theaters than it does on sales of movie tickets.

C. Moviemania’s customers prefer the taste of popcorn popped in coconut oil to that of popcorn popped in canola oil.

D. Total attendance at Moviemania’s movie theaters was more than 20 percent higher last year than the year before.

E. The year before last, Moviemania experienced a 10 percent increase in popcorn sales over the previous year.

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by Vignesh.4384 » Mon Aug 04, 2008 4:45 am
IMO A
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by annakool1009 » Mon Aug 04, 2008 5:03 am
Vignesh.4384 wrote:IMO A
Can you please explain your answer ?
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by Vignesh.4384 » Mon Aug 04, 2008 5:11 am
the question is asking u to counter what moviemania is claiming.

consider the scenario where all the refreshments increased by less than 5 % and if pop corn sales increased by 5% .. it means that the sales of pop corn has increased..

Are you able to understand ?

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Vignesh
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by annakool1009 » Mon Aug 04, 2008 5:25 am
Vignesh.4384 wrote:the question is asking u to counter what moviemania is claiming.

consider the scenario where all the refreshments increased by less than 5 % and if pop corn sales increased by 5% .. it means that the sales of pop corn has increased..

Are you able to understand ?

Regards,
Vignesh
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Thanks Vignesh for the explanation, but i still beg to differ.

When choosing option 'A', one will assume, that moviemania is comapring (when it says "its popcorn sales is hurt") its the popcorn sales increase vis-avis other refreshment sales increase.
However, it is no where mentioned in the passage that moviemania is comparing its popcorn sales with the sales of other refreshments.

It is possible that, Popcorn is a very fast moving item, and it is natural that its sales is more than the sales of other refreshments.

It becomes further clear that moviemania is comparing its Popcorn sales increase in one year with the Popcorn sales increase in another year by the line
"That claim is false, however, since according to Moviemania’s own sales figures, Moviemania sold 5 percent more popcorn last year than in the previous year. "

Thus, when moviemania says "its popcorn sales is hurt", it is sales in one year as compared to sales in another year.
Thus the sales of refreshments should be irrelevant.
As such "A" is out.

Please let me know your opinion.
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by Vignesh.4384 » Tue Aug 05, 2008 6:14 pm
Hi annakool1009,

Let me try explaining in a better way.

The below is just an eg:
Lets assume u owned moviemania .
As refreshments u r selling popcorn , coke and ice cream.

The first year u owned it lets say that revenue from all refreshments was rs 900. let the sales of each item be 300 respectively.

The next year . Lets the sales of all other refreshments increased by less than 10 % and pop corn increases by 10 % .

This means coke and icecream could hav made a profit of lesser than 30rs but pop corn has made a sale of 30 rs.

Would u say that pop corn sales has hurt u ? I dont think so.

Here comparison wiht other refreshments are done to prove that popcorn sold more than the other item.

Regards,
Vignesh
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by mmslf75 » Sat Dec 26, 2009 11:16 pm
Vignesh.4384 wrote:Hi annakool1009,

Let me try explaining in a better way.

The below is just an eg:
Lets assume u owned moviemania .
As refreshments u r selling popcorn , coke and ice cream.

The first year u owned it lets say that revenue from all refreshments was rs 900. let the sales of each item be 300 respectively.

The next year . Lets the sales of all other refreshments increased by less than 10 % and pop corn increases by 10 % .

This means coke and icecream could hav made a profit of lesser than 30rs but pop corn has made a sale of 30 rs.

Would u say that pop corn sales has hurt u ? I dont think so.

Here comparison wiht other refreshments are done to prove that popcorn sold more than the other item.

Regards,
Vignesh
So u mean when total is 900
300 each
total increases by say 8%
972
popcorn increase by 10%
330
972-330 = 642 / 2 ===> 321

330 > 321

Therfore A hold true



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