Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one-half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted.
Which of the following, if true, provides the strongest evidence that the magazine's profits are likely to decline if the plan is instituted?
Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one-half the number of issues it publishes each year.The quality of articles, the number of articles published per year, and the subscription price will not change.Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted.
Which of the following, if true, provides the strongest evidence that the magazine's profits are likely to decline if the plan is instituted?
A With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
B The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity of the magazine's articles than about a possible loss of the current high quality of its articles.
C Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription price were increased.
D Most of the advertisers that purchase advertising space In the magazine will continue to spend the same amount on advertising per issue as they have in the past.
E Production costs for the magazine are expected to remain stable.
Premise: plan to reduce 1/2 # of issues
Conclusion: profit decline
A, 贵1/3每一个issue,但是减少了1/2的量,总体还是增加了
B无关 quality not change
C无关,subscribe prc not change
D advertises not lost, 但是ad amount/issue 也不变, ads revenue= (# issue)* (ads amoun/issue) 因为 # issue 减少到一半,所以ads revenue 减少了一半
E 成本不变
postage rates increase ==> plan to cut issue # ==> #issue decreases ==> ads revenue decreases
don't focus too much on the postage rates,
actually the premise of the argument is the plan to cut issue amount, so that the amount of issue is what affects the profit the most
;)