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Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted.

Which of the following, if true, provides the strongest evidence that the magazine's profits are likely to decline if the plan is instituted?
  • a)
    With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
  • b)
    The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity of the magazine's articles than about a possible loss of the current high quality of its articles.
  • c)
    Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription price were increased.
  • d)
    Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
  • e)
    Production costs for the magazine are expected to remain stable.
Correct answer is option 'A'. Can you explain this answer?
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Because postage rates are rising, Home Decorator magazine plans to max...
A. With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
This option provides strong evidence that the magazine's profits are likely to decline if the plan is instituted. It indicates that the new postage rates would significantly increase the cost to mail each issue under the proposed plan. This suggests that the magazine's expenses would rise, potentially offsetting any savings from reducing the number of issues published. Therefore, it weakens the profitability of the plan.
B. The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity of the magazine's articles than about a possible loss of the current high quality of its articles.
This option states that the majority of the magazine's subscribers prioritize the quality of articles over the quantity of articles. While this information is important for understanding subscriber preferences, it doesn't directly address the impact on profits if the plan is instituted.
C. Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription price were increased.
This option suggests that many long-time subscribers would continue their subscriptions even if the subscription price were increased. While this is relevant for understanding subscriber loyalty, it doesn't provide strong evidence regarding the profitability of the plan.
D. Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
This option states that most advertisers will continue to spend the same amount on advertising per issue as they have in the past. While this is beneficial for maintaining advertising revenue, it doesn't directly address the impact on profits if the plan is instituted.
E. Production costs for the magazine are expected to remain stable.
This option provides information about the stability of production costs for the magazine. While it is important to consider production costs, it doesn't directly address the impact on profits if the plan is instituted.
Among the options provided, option A is the one that provides the strongest evidence that the magazine's profits are likely to decline if the plan is instituted. It highlights the significant increase in mailing costs per issue under the proposed plan, which would impact the magazine's expenses and potentially lead to lower profits.
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Community Answer
Because postage rates are rising, Home Decorator magazine plans to max...
Explanation:

Impact of Postage Rates on Mailing Costs
- If a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue, this increase in postage costs could significantly impact the magazine's profits.
- Higher mailing costs would reduce the overall profitability of each issue, potentially leading to a decline in profits for the magazine.

Effect on Profitability
- Given that the other factors such as quality of articles, number of articles, and subscription price are remaining constant, the increase in mailing costs could outweigh any potential cost savings from publishing fewer issues.
- This could result in a scenario where the reduced number of issues does not lead to a proportional increase in profits, ultimately causing a decline in overall profitability for the magazine.

Conclusion
- Therefore, option A provides the strongest evidence that the magazine's profits are likely to decline if the plan to reduce the number of issues published each year is instituted.
- It highlights a crucial factor, the impact of increased postage rates on mailing costs, that could offset any potential benefits of the cost-cutting measure.
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Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. Can you explain this answer?
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Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. 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 Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
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Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. 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Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. 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Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. 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Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazines plan is instituted.Which of the following, if true, provides the strongest evidence that the magazines profits are likely to decline if the plan is instituted?a)With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.b)The majority of the magazines subscribers are less concerned about a possible reduction in the quantity of the magazines articles than about a possible loss of the current high quality of its articles.c)Many of the magazines long-time subscribers would continue their subscriptions even if the subscription price were increased.d)Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.e)Production costs for the magazine are expected to remain stable.Correct answer is option 'A'. 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