Ask Questions, Discuss Approaches & No Clutter

First-time computer buyers buying PXC home computers

Open 1 Answers 105 Views
First-time computer buyers buying PXC home computers typically buy models that cost much less and have a smaller profit margin per computer than do PXC computers bought by people replacing their computers with more powerful models. Last year PXC's profits from computer sales were substantially higher than the previous year, although about the same number of PXC computers were sold and the prices and profit margins for each computer model that PXC sells remained unchanged.
If the statements above are true, which of the following is most strongly supported by them?
A. PXC's competitors raised the prices on their computers last year, making PXC computers more attractive to first-time computer buyers.
B. The number of people buying PXC computers who also bought PXC computer-related products, such as printers, was larger last year than the previous year.
C. Among computer buyers who bought a PXC computer to replace their existing computer, the proportion who were replacing a computer made by a competitor of PXC was greater last year than the previous year.
D. The proportion of PXC computers bought by first-time computer buyers was smaller last year than the previous year.
E. PXC's production costs for its computers were lower last year than they had been the previous year.

1 Answer

CHOICE d indirectly support the arugment by saying that "if the first time users were less and EVERTHING is same then the profit marging would be greater and support the argument"""
answered Aug 23, 2016 by Beginner (1 point)
Student Speaks

Jyotsna Mehta

Indian School of Business, Co'18

I am very thankful to Gmatxchange and would definitely recommend Gmatxchange mentors to all those students applying for MBA admissions

Your Tentative GMAT Score
Estimate your GMAT score.
The scorer helps you to determine your current level within a few questions you solve.Read More
Please log in or register to use the Scoring Feature
Confused about your profile & colleges, Get FREE profile evaluation today from over 10 consultants.
Follow us and get quick prep updates on Facebook