GWD24-Q37

[JS]

24-37
Fish currently costs about the same at seafood stores throughout Eastville and its surrounding suburbs. Seafood stores buy fish from the same wholesalers and at the same prices, and other business expenses have also been about the same. But new tax breaks will substantially lower the cost of doing business within the city. Therefore, in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores.

For the purpose of evaluating the argument, it would be most useful to know whether
A)more fish wholesalers are located within the city than in the surrounding suburbs.
B)any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
C)the wholesale price of fish is likely to fall in the future
D)fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs.
E)Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores.

Answer: E

I think it should be D.

The first sentence of the argument states - Fish currently costs about the same at seafood stores throughout Eastville and its surrounding suburbs. This gives us a foundation to compare the profit marings.
So, it will be useful to know whether fish always cost the same or it changes. Because if the price varies from shop to shop from area to area, we cannot be sure which will have better profit margings, city or suburb, even with city's tax break.

Maybe I am just crazy but that's my view.

[freshmanduke]

the conclusion is that
in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores

Reason:
new tax breaks will substantially lower the cost of doing business within the city

cost within city is lower that that of the suburb.
and we know that

profit margin=sale price - cost

since the cost within city is lower.
to better evaluate the argument, we need to focus on the sale price.
E explains everything.

if Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores, then we do not know wether the margin of th city is higher than that of the suburban area.
Because the cost and price within city are both lower than the cost and price of the suburb.

D is wrong because even the costs at seafood stores throughout Eastville and its surrounding suburbs are the same, ost at the store within city is still lower than that at the store in suburbs.
therefore, it can not justify why margin is higher in city.

[JS]

Well, of course E is the most obvious choice but I really doubt ETS is that kind.

Besides, if the fish prices vary, doesnt matter how much lower the price the city fishshops offer. We will not be able to know whose price is higher and whose is lower. Because there is no base (fix cost) to compare.

For example, if there is a sale in Taipei offer Prada shoes at 70% off and another one in London at 60% off. Do we know which one is cheaper? No, we dont. But if we know the price of each pair of shoes at both places before the sale are the same. Then we can make a conclusion that the price in london is cheaper after the discount.

(But again maybe it's because I drink too much )

[freshmanduke]

[quote]Besides, if the fish prices vary, doesnt matter how much lower the price the city fishshops offer. We will not be able to know whose price is higher and whose is lower. Because there is no base (fix cost) to compare


first, I need to clarify your point.
From my interpretation of your explanation is that prices of the store within the city varied, therefore, we do not know which store has a lower price and which has a higher one.

If so, the answer should be E,since the question requires you to evaluate
whether the margins of the store in city iare higher than those of the store in suburban area.
it doesn't ask you to evaluate the margins among those stores in city.
[/quote]

[JS]

Well, never mind.
Sometimes I dont even know what I am talking about.
It's hard to read with one eye, to type with one hand and to think with half functional brain you know.

[freshmanduke]

agree, I met the same condition all the time. I think it is common among people who prepare for CR. Anyway, dont give too much thought on a question or you may end up being haunted by it. CR is absoluately not a good metal exercise for our body.

[JS]

If I see this question on my test, I will still go 4 D tho.
just to see what will happen.

[freshmanduke]

I rather choose not to run the risk.
It's too dicy.

[JS]

I rather choose not to run the risk.
It's too dicy.

I was just kidding.

I looked at the question and answer again today and I agree it should be E.
I dig too much into the words and lost the focus.

[Pudding]

同意freshmanduke的分析喔....

我想針對price的部份, 題目的意思應該是考慮其average price,
就從profit margin=sale price - cost 的方向去考慮可以解此題...

[vegoblack]

沒錯~推E

[beqchman]

Just correct some idea about Profit Margin.
Profit Margin. While your gross profit is expressed as a dollar amount , your gross profit margin is a percentage, computed as follows: Gross Profit divided by Sales equals Gross Profit Margin.

[A級垂耳兔]

別說那麼多...直接評估幹掉D
答案D取YES:城市獲利大於郊區--結論成立
取NO :違背前提...前提已經說郊區及城市魚的進貨成本相同..都在同一個地方買..價格也相同...

這樣答案很明顯了~~~