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Mitchell Motor Company recently had a big jump in pick-up truck sales
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24 Feb 2026, 01:29
24 Feb 2026, 01:29
Expert Reply
Question 1
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Question Stats:
90% (01:18) correct
10% (01:28) wrong based on 21 sessions
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Mitchell Motor Company recently had a big jump in pick-up truck sales after hiring a new design team to give their pick-up trucks a more upscale look designed to appeal to a more affluent clientele. The company is now planning to launch a new line of sub-compact cars using the same concept.
The company's plan assumes that
(A) other sub-compact cars with an upscale look do not yet exist in the market
(B) an upscale clientele would be interested in a sub-compact car
(C) the same design team could be employed for both projects
(D) giving sub-compacts an up-scale look requires a design team
(E) customers who bought older pick-up trucks would be just as likely to buy the new upscale looking pick-up trucks
The company's plan assumes that
(A) other sub-compact cars with an upscale look do not yet exist in the market
(B) an upscale clientele would be interested in a sub-compact car
(C) the same design team could be employed for both projects
(D) giving sub-compacts an up-scale look requires a design team
(E) customers who bought older pick-up trucks would be just as likely to buy the new upscale looking pick-up trucks
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Re: Mitchell Motor Company recently had a big jump in pick-up truck sales
[#permalink]
26 Feb 2026, 23:26
26 Feb 2026, 23:26
1
Expert Reply
Explanation
The company’s reasoning is:
-Upscale redesign of pick-up trucks ----> sales increased.
-Therefore, use the same upscale design concept for sub-compact cars.
For this plan to succeed, the company must assume that the target market (a more affluent clientele) would actually be willing to buy a sub-compact car.
If affluent customers are not interested in sub-compacts at all, then giving them an upscale look would not increase sales.
(A) The plan does not depend on there being no competitors.
(C) The same team does not have to be reused; only the concept matters.
(D) A design team is not the key assumption — market demand is.
(E) This concerns past pick-up buyers, which is irrelevant to the new sub-compact strategy.
Thus, the crucial assumption is that affluent customers would want a sub-compact car (B).
Answer: B
The company’s reasoning is:
-Upscale redesign of pick-up trucks ----> sales increased.
-Therefore, use the same upscale design concept for sub-compact cars.
For this plan to succeed, the company must assume that the target market (a more affluent clientele) would actually be willing to buy a sub-compact car.
If affluent customers are not interested in sub-compacts at all, then giving them an upscale look would not increase sales.
(A) The plan does not depend on there being no competitors.
(C) The same team does not have to be reused; only the concept matters.
(D) A design team is not the key assumption — market demand is.
(E) This concerns past pick-up buyers, which is irrelevant to the new sub-compact strategy.
Thus, the crucial assumption is that affluent customers would want a sub-compact car (B).
Answer: B
gmatclubot
Re: Mitchell Motor Company recently had a big jump in pick-up truck sales [#permalink]
26 Feb 2026, 23:26
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