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Moviemania

by zaarathelab » Tue Oct 18, 2011 9:31 am
In January of last year the Moviemania chain of movie theaters started popping 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.

Pls support your answer choice with explanations.

Thanks
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by vaibhavgupta » Tue Oct 18, 2011 11:13 am
IMO B
whts OA?
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by shankar.ashwin » Tue Oct 18, 2011 11:40 am
D IMO.

We should look for an option which accepts the fact there has been an increase in popcorn sales but give us a valid reason they would still incur loss.
D is the only option which says there has been a 20% increase in attendance last year, but corresponding pop-corn sales have gone up only by 5%. Hence they consider switching back to canola oil.
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by vaibhavgupta » Tue Oct 18, 2011 12:09 pm
shankar.ashwin wrote:D IMO.

We should look for an option which accepts the fact there has been an increase in popcorn sales but give us a valid reason they would still incur loss.
D is the only option which says there has been a 20% increase in attendance last year, but corresponding pop-corn sales have gone up only by 5%. Hence they consider switching back to canola oil.
Yes.. but the question wants support against the moviemania's claim!
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by rohangupta83 » Tue Oct 18, 2011 12:38 pm
IMO A

Conclusion 1: Change in oil has hurt sales of popcorn.
Conclusion 2: Change in oil HAS NOT hurt sales of popcorn.

Question has asked to support conclusion 2

B talks about what makes money, doesn't talk about sale of popcorns, so its out
C supports Conclusion 1
D supports Conclusion 1
E irrelevant information/plus at the most its supporting conclusion 1 as Moviemania is using coconut oil this year.

A however says that the sale of refreshments increased by less than 5% but we know that popcorn sales increased by 5% so popcorns did better. Hence, this choice supports conclusion 2.
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by vaibhavgupta » Tue Oct 18, 2011 12:40 pm
rohangupta83 wrote:IMO A

Conclusion 1: Change in oil has hurt sales of popcorn.
Conclusion 2: Change in oil HAS NOT hurt sales of popcorn.

Question has asked to support conclusion 2

B talks about what makes money, doesn't talk about sale of popcorns, so its out
C supports Conclusion 1
D supports Conclusion 1
E irrelevant information/plus at the most its supporting conclusion 1 as Moviemania is using coconut oil this year.

A however says that the sale of refreshments increased by less than 5% but we know that popcorn sales increased by 5% so popcorns did better. Hence, this choice supports conclusion 2.
Yes, Now it seems better.. i was super confused for this question and went for B..

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by shankar.ashwin » Tue Oct 18, 2011 9:07 pm
Ah! Misread the question. agree with rohangupta, should be A
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by zaarathelab » Tue Oct 18, 2011 9:42 pm
rohangupta83 wrote:IMO A

Conclusion 1: Change in oil has hurt sales of popcorn.
Conclusion 2: Change in oil HAS NOT hurt sales of popcorn.

Question has asked to support conclusion 2

B talks about what makes money, doesn't talk about sale of popcorns, so its out
C supports Conclusion 1
D supports Conclusion 1
E irrelevant information/plus at the most its supporting conclusion 1 as Moviemania is using coconut oil this year.

A however says that the sale of refreshments increased by less than 5% but we know that popcorn sales increased by 5% so popcorns did better. Hence, this choice supports conclusion 2.
Nice explanation rohan. But could you explain how D is supporting conclusion 1? D if anything should be irrelevant as sales of popcorn may not have a direct relationship with increase in movie attendance.
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by rohangupta83 » Tue Oct 18, 2011 11:28 pm
zaarathelab wrote:
rohangupta83 wrote:IMO A

Conclusion 1: Change in oil has hurt sales of popcorn.
Conclusion 2: Change in oil HAS NOT hurt sales of popcorn.

Question has asked to support conclusion 2

B talks about what makes money, doesn't talk about sale of popcorns, so its out
C supports Conclusion 1
D supports Conclusion 1
E irrelevant information/plus at the most its supporting conclusion 1 as Moviemania is using coconut oil this year.

A however says that the sale of refreshments increased by less than 5% but we know that popcorn sales increased by 5% so popcorns did better. Hence, this choice supports conclusion 2.
Nice explanation rohan. But could you explain how D is supporting conclusion 1? D if anything should be irrelevant as sales of popcorn may not have a direct relationship with increase in movie attendance.
Option D states that ticket sales were 20% higher last year than the year before. It may follow that since ticket sales grew by 20%, sales of refreshments should also grow by a similar percentage. However, since sale of popcorn grew only by 5%, Moviemania is right to think that the new oil is hampering sales. (This choice is irrelevant though as it draws upon an assumption that ticket sales and sales of popcorns are proportional)

Hope this helps!
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by rohit_gmat » Wed Oct 19, 2011 8:56 am
IMO A

B - not relevant
C, D , E -> weakens
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by zaarathelab » Wed Oct 19, 2011 11:17 am
OA IS A

thanks guys
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by saketk » Wed Oct 19, 2011 10:36 pm
zaarathelab wrote:In January of last year the Moviemania chain of movie theaters started popping 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.

Pls support your answer choice with explanations.

Thanks


+1 for A .
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by GmatKiss » Thu Oct 20, 2011 12:38 am
went with A :)
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