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Megalimpet is a nationwide owner of office space. They have major office buildings in the downtowns of several cities in the 48 lower states, and rent this space to individual companies. Megalimpet office spaces vary from small office to large suites, and every space has custom-designed wall-to-wall carpeting. The carpet in several Megalimpet facilities needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the three-year warranty. Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.
Q. Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?
  • a)
    All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpet's locations from coast to coast.
  • b)
    BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpet's largest office spaces.
  • c)
    The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.
  • d)
    The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.
  • e)
    The next competing bid after BCC's was 50% higher than BCC's bid.
Correct answer is option 'D'. Can you explain this answer?
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Megalimpet is a nationwide owner of office space. They have major offi...
Analysis:
The argument presented in the passage suggests that BCC will make a significant profit from the contract with Megalimpet due to their ability to perform the services for less than their bid price. However, option D calls this argument into question by introducing a potential issue with the quality of BCC's carpets.

Explanation:

Material Degradation:
- The material in BCC's carpets degrades rapidly when in contact with standard toner, causing unsightly and smelly degraded sections.
- This degradation would likely lead to additional costs for BCC in terms of replacing the degraded sections, potentially cutting into their expected profit margin.

Impact on Profitability:
- The need for frequent replacements due to material degradation could increase BCC's costs and reduce the profitability of the contract with Megalimpet.
- This potential issue with the quality of BCC's carpets casts doubt on their ability to make a large profit as initially suggested in the passage.
In conclusion, option D raises a significant concern about the quality of BCC's carpets and the potential impact on their profitability from the contract with Megalimpet. This information undermines the argument that BCC will make a substantial profit from the deal.
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Megalimpet is a nationwide owner of office space. They have major offi...
From all the evidence given, it seems that BCC (and the independent consultants) have taken all costs into account, and the analysis reveals that they will reap a considerable profit. In order to call this into question, we have to come up with some major unanticipated cost that would not be something already considered in this analysis.
(D) is the credited answer. First of all, laser printers and photocopiers are very common devices in office spaces, so we good reason to think that many of Megalimpet's tenants will use these. If the toner degrades the carpet, that's a huge additional expense for BCC, because their contract includes "ongoing maintenance" --- i.e. replacing any carpet that needs replacing. Finally, nothing in the argument stem gives us any indication that this problem was on anybody's radar, so this well could be an unexpected or unanticipated expense for BCC. Therefore, it most calls into question the idea that BCC will make a huge profit.
(A) & (C) are all expenses that would have been very clear to BCC and to its independent consultants, and therefore all of these would have had to have been taken into account when the financial analysis of the bid was made. There is no reason any of these expenses would be unanticipated.
(B) speaks to BCC previous experience, which, if anything, would tend to suggest they know what they are talking about. If anything, this would tend to strengthen the argument, not weaken it.
(E) only compares BCC to the second lowest bid, but we have no idea about that company, what it did or did not take into account in their bid, and what their overall costs might be. There are too many unknowns for this piece of information, by itself, to have any substantial impact on the argument.
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Megalimpet is a nationwide owner of office space. They have major office buildings in the downtowns of several cities in the 48 lower states, and rent this space to individual companies. Megalimpet office spaces vary from small office to large suites, and every space has custom-designed wall-to-wall carpeting. The carpet in several Megalimpet facilities needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the three-year warranty. Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. Can you explain this answer?
Question Description
Megalimpet is a nationwide owner of office space. They have major office buildings in the downtowns of several cities in the 48 lower states, and rent this space to individual companies. Megalimpet office spaces vary from small office to large suites, and every space has custom-designed wall-to-wall carpeting. The carpet in several Megalimpet facilities needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the three-year warranty. Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. 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 Megalimpet is a nationwide owner of office space. They have major office buildings in the downtowns of several cities in the 48 lower states, and rent this space to individual companies. Megalimpet office spaces vary from small office to large suites, and every space has custom-designed wall-to-wall carpeting. The carpet in several Megalimpet facilities needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the three-year warranty. Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. 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Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. Can you explain this answer?.
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Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Megalimpet is a nationwide owner of office space. They have major office buildings in the downtowns of several cities in the 48 lower states, and rent this space to individual companies. Megalimpet office spaces vary from small office to large suites, and every space has custom-designed wall-to-wall carpeting. The carpet in several Megalimpet facilities needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the three-year warranty. Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Megalimpet is a nationwide owner of office space. They have major office buildings in the downtowns of several cities in the 48 lower states, and rent this space to individual companies. Megalimpet office spaces vary from small office to large suites, and every space has custom-designed wall-to-wall carpeting. The carpet in several Megalimpet facilities needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the three-year warranty. Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. 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Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Megalimpet is a nationwide owner of office space. They have major office buildings in the downtowns of several cities in the 48 lower states, and rent this space to individual companies. Megalimpet office spaces vary from small office to large suites, and every space has custom-designed wall-to-wall carpeting. The carpet in several Megalimpet facilities needed replacing. The winning bid for the nationwide carpet replacement was submitted by Bathyderm Carpet Company (BCC). The bid contract involves all delivery costs, all installation, and any ongoing maintenance and upkeep while the carpet is under the three-year warranty. Both BCC executives and independent consultants they hired felt BCC would be able to perform all these services for far less than their bid price; these circumstances would allow BCC to reap a considerable profit.Q.Which of the following, if true, most calls in question the argument that BCC will make a large profit from this contract with Megalimpet?a)All the carpets will have to be transported by train from BCC factory in Louisville, KY, to Megalimpets locations from coast to coast.b)BCC has already supplied carpets to a number of restaurant chains, and some of those spaces are as large as Megalimpets largest office spaces.c)The carpet installation teams will have to cut different sizes of the carpets for the different size office suites in the Megalimpet buildings.d)The material in BCC carpets degrades rapidly when it comes into contact with standard toner, found in most laser printers and photocopiers; the degraded sections are unsightly and smell bad, so they often need to be replaced.e)The next competing bid after BCCs was 50% higher than BCCs bid.Correct answer is option 'D'. 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