MixIt, a company that manufactures smoothie-makers, has been manufacturing smoothie-makers as well as spare parts for its products. Since old smoothie-makers develop faults and spare parts are required to fix them, MixIt should continue manufacturing spare parts for its older models in the future.Which of the following, if true, would best support the recommendation that the company should no longer manufacture spare parts for its models?a)After prolonged use, some of the older models of Mixit smoothie-makers become irreparable.b)Not many manufacturers of smoothie-makers produce spare parts for their older models.c)It is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.d)The profit margins in the sales of spare parts are significantly lower than the profit margins in the sales of smoothie-makers.e)Excellent customer service is one of the necessary requirements for a company to be successful in the smoothie-maker market.Correct answer is option 'C'. Can you explain this answer?

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Which of the following, if true, would best support the recommendation that the company should no longer manufacture spare parts for its models?

a)
After prolonged use, some of the older models of Mixit smoothie-makers become irreparable.
b)
Not many manufacturers of smoothie-makers produce spare parts for their older models.
c)
It is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.
d)
The profit margins in the sales of spare parts are significantly lower than the profit margins in the sales of smoothie-makers.
e)
Excellent customer service is one of the necessary requirements for a company to be successful in the smoothie-maker market.

Correct answer is option 'C'. Can you explain this answer?

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Test: Critical Reasoning- 1

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MixIt, a company that manufactures smoothie-makers, has been manufactu...

Pre-Thinking

Conclusion Clarification

The conclusion presents a recommendation based on a given situation. The question stem presents another recommendation that goes against this conclusion.

Pre-Thinking Approach

Let’s see how we can make the conclusion less believable. To do so, we will look at the logical structure, focusing on linkage 1and the conclusion. Thus the way to weaken the conclusion will be to weaken or break this linkage by finding a new piece of information that will cast a doubt on the recommendation made in the passage.

Linkage#1 – Old smoothie-makers develop faults and spare parts are required to fix them.

Weakener – What if for MixIt customers there is a better alternative than getting old SMs repaired?

- Instance 1: New models of SMs that are cost efficient can sway people away from getting the old SMs repaired.

Weakener - What if MixIt can outsource the same quality of spare parts for its products at a cheaper price? In such a case, MixIt can cater to the demand of its customers while realizing cost savings.

With this understanding in mind, let’s take a look at the option statements.

Answer Choices

After prolonged use, some of the older models of Mixit smoothie-makers become irreparable.

Incorrect - Irrelevant

The argument makes a recommendation on the basis of a current requirement, which is the demand for spare-parts to fix old smoothie-makers. So even if some models cannot be repaired, the requirement for the spare-parts for the ones that can be is still valid.

Not many manufacturers of smoothie-makers produce spare parts for their older models.

Incorrect - Irrelevant

This information doesn’t argue for or against the conclusion as the argument is specific to the business decision MixIt should make.

It is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.

Correct

This choice is written along the lines of our pre-thinking per Instance 1. If it’s becoming cheaper to replace a SM with a new model, it is quite possible that the demand for the spare parts to fix old models will decrease progressively.

The profit margins in the sales of spare parts are significantly lower than the profit margins in the sales of smoothie-makers.

Incorrect - Irrelevant

The profit margins in the sales of spare parts may be lower yet significant enough that the company should continue manufacturing spare parts for its older models.

Excellent customer service is one of the necessary requirements for a company to be successful in the smoothie-maker market.

Incorrect - Irrelevant

The argument makes no link between customer service and manufacturing of spare parts.

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Most Upvoted Answer

MixIt, a company that manufactures smoothie-makers, has been manufactu...

Reasoning:

Cost of Replacement vs Repair:
- Option C states that it is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.
- This suggests that customers are more likely to opt for buying a new smoothie-maker rather than repairing their old one.
- If the cost of repairing exceeds the cost of replacement, there would be decreased demand for spare parts.
Therefore, the best support for the recommendation that MixIt should no longer manufacture spare parts for its models is the fact that it is more cost-effective for customers to replace their old smoothie-makers with new ones rather than repairing them. This economic consideration is crucial in determining the company's strategy regarding spare parts production.

Answered by Talent Skill Learning · View profile

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MixIt, a company that manufactures smoothie-makers, has been manufacturing smoothie-makers as well as spare parts for its products. Since old smoothie-makers develop faults and spare parts are required to fix them, MixIt should continue manufacturing spare parts for its older models in the future.Which of the following, if true, would best support the recommendation that the company should no longer manufacture spare parts for its models?a)After prolonged use, some of the older models of Mixit smoothie-makers become irreparable.b)Not many manufacturers of smoothie-makers produce spare parts for their older models.c)It is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.d)The profit margins in the sales of spare parts are significantly lower than the profit margins in the sales of smoothie-makers.e)Excellent customer service is one of the necessary requirements for a company to be successful in the smoothie-maker market.Correct answer is option 'C'. Can you explain this answer?

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MixIt, a company that manufactures smoothie-makers, has been manufacturing smoothie-makers as well as spare parts for its products. Since old smoothie-makers develop faults and spare parts are required to fix them, MixIt should continue manufacturing spare parts for its older models in the future.Which of the following, if true, would best support the recommendation that the company should no longer manufacture spare parts for its models?a)After prolonged use, some of the older models of Mixit smoothie-makers become irreparable.b)Not many manufacturers of smoothie-makers produce spare parts for their older models.c)It is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.d)The profit margins in the sales of spare parts are significantly lower than the profit margins in the sales of smoothie-makers.e)Excellent customer service is one of the necessary requirements for a company to be successful in the smoothie-maker market.Correct answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about MixIt, a company that manufactures smoothie-makers, has been manufacturing smoothie-makers as well as spare parts for its products. Since old smoothie-makers develop faults and spare parts are required to fix them, MixIt should continue manufacturing spare parts for its older models in the future.Which of the following, if true, would best support the recommendation that the company should no longer manufacture spare parts for its models?a)After prolonged use, some of the older models of Mixit smoothie-makers become irreparable.b)Not many manufacturers of smoothie-makers produce spare parts for their older models.c)It is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.d)The profit margins in the sales of spare parts are significantly lower than the profit margins in the sales of smoothie-makers.e)Excellent customer service is one of the necessary requirements for a company to be successful in the smoothie-maker market.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MixIt, a company that manufactures smoothie-makers, has been manufacturing smoothie-makers as well as spare parts for its products. Since old smoothie-makers develop faults and spare parts are required to fix them, MixIt should continue manufacturing spare parts for its older models in the future.Which of the following, if true, would best support the recommendation that the company should no longer manufacture spare parts for its models?a)After prolonged use, some of the older models of Mixit smoothie-makers become irreparable.b)Not many manufacturers of smoothie-makers produce spare parts for their older models.c)It is becoming increasingly cheaper to replace a smoothie-maker with a new one than to get it repaired.d)The profit margins in the sales of spare parts are significantly lower than the profit margins in the sales of smoothie-makers.e)Excellent customer service is one of the necessary requirements for a company to be successful in the smoothie-maker market.Correct answer is option 'C'. Can you explain this answer?.

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