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Prep2012-Pack1-CR-010 VCR004721 Easy
Paper& rint 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 25 percent. Since Paper&rint’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 increase Paper&rint’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&rint 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 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&rint.
E. Some of Paper&rint’s locations are in small towns and represent the only retail outlet for books within the community.
Reasoning
What would make it least likely that devoting more of the business to books and stationery, and less to magazines, would increase profits?
The reasoning behind the plan is that Paper&rint has a greater profit margin on books and stationery than it can legally attain on magazines,
and that carrying more items with higher profit margins and fewer with lower profit margins will increase overall profits. A weakness in this reasoning is that profits depend on actually selling items,
not merely on carrying them. If magazines sell far more briskly than other merchandise, shelf space devoted to magazines may generate higher profits, despite the magazines’ lower profit margins.
If this were the situation, the plan might backfire and fail to increase profits.
A. Lower retail prices on magazines could lower Paper&rint's profits per magazine sold and hence make the plan
to devote more shelf space to merchandise other than magazines more likely to increase overall profits.
B. Correct. If far more customers shop at Paper&rint for its broad range of magazines than for its books and
stationery, then cutting the shelf space devoted to magazines may disappoint the customers, reducing overall
sales and profits.
C. Paper&rint‘s magazine profits come from the 25 percent of the magazines’ retail price that goes to the retailer,
no matter who gets the rest.
D. This would tend to reduce Paper&Print's magazine sales and hence make the plan to devote more shelf space to
merchandise other than magazines more likely to increase overall profits.
E. This would tend to increase Paper&Print’s book sales at some stores and hence make the plan to devote more
shelf space to books rather than magazines more to increase overall profits.
The correct answer is B.
如上所示不知道题目是打错了还是肿么了。Which of the following, if true, most strongly argues that the plan, if put into effect, will increase Paper&Print’s profits?
我觉得是SUPPORT的问题 但是看了分析答案选B 是WEAKEN啊
啥情况！！！
求NN解答~~~~~~~~~ |
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发表于 2012-10-13 15:26:38
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