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Re: Surveys reveal that the vast majority of hotel guests in the [#permalink]
tapas3016 wrote:
Carcass wrote:
but it neglects the profit after selling the food and beverages kept in the refrigerators.

D is the best to reinforce the argument


I did not look out for this and selected E.


Correct answer is D right?
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Re: Surveys reveal that the vast majority of hotel guests in the [#permalink]
Why can't Option B be the right answer?

The question says which of the following options "if, true" , "would" support hotel T's plan to increase "profitability", as per the study in US "those guests would prefer to have an empty refrigerator in place of a mini-bar in their rooms in order to have space to put their own food and beverages", option B is consonant with this statement because the study was being conducted in US hence hotel T being in US would lend support to hotel T's plan to increase profitability through happy customers (nowhere it is talking about economic profitability).?? right? or how am i wrong? please suggest.
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Re: Surveys reveal that the vast majority of hotel guests in the [#permalink]
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OFFICIAL EXPLANATION



Hotel T wants to increase profitability by eliminating in-room mini-bars and replacing them with empty refrigerators. To increase Hotel T's profitability, the information provided must demonstrate that the difference between Hotel T's revenues and costs will increase as a result of the plan.

(A) The fact that there is space available in Hotel T's in-room mini bars for guests to put their own items has no relationship to Hotel T's plan to increase its profitability.

(B) Since the survey discussed in the passage discussed hotel guests in the United States, it has relevance for Hotel T. However, this fact has no bearing on whether Hotel T's plan will increase its profitability.

(C) Since some guests of Hotel T do not make any purchases from their in-room mini-bars, eliminating these mini-bars will not result in any lost revenue from these guests. However, this information tells us nothing about the purchasing habits of other guests of Hotel T and it has no obvious relationship to Hotel T's plan to increase profitability.

(D) CORRECT. This fact establishes that Hotel T is currently losing money on the mini-bars. While it makes money on the mini-bar purchases of its guests, Hotel T actually loses more money because it must discard mini-bar items that have not sold by their expiration dates. By eliminating the mini-bars in favor of refrigerators, Hotel T will lose the income from mini-bar purchases but save even more money because it no longer will have to discard old mini-bar items. This will increase Hotel T's profitability.

(E) Hotel T will reduce its costs by switching from stocked mini-bars to empty refrigerators. However, this may or may not increase Hotel T's profitability. For example, if the lost revenue from the elimination of the mini-bars exceeds the reduction in costs, then the switch will actually decrease Hotel T's profits.­
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