Multi-Source Reasoning Practice Questions - 2 | Practice Questions for GMAT PDF Download

The answer is Yes. The passage indicates that both are working towards preventing their customers from leaving.

The answer is No. The store’s overall profitability depends on a number of factors including the number of lattes sold and the number of syrups sold. If the store is able to sell more lattes and syrups by lowering the price of the lattes and charging 50 cents per syrup, then the store’s overall profitability could actually improve if they sell some syrups at the 50 cent price while offering the first syrup for free. Additionally, if the store makes even ten cents per latter and is able to sell more lattes by lowering the price, management could improve the store’s overall profitability by charging less per latte. There is no guarantee that any final price agreed upon by both parties will necessarily have a negative impact on the store’s overall profitability based solely on the information in the three e-mails.

The answer is No. While the branch manager is concerned with profitability, there is nothing in the passage to support this kind of inference.

The answer is No. The regional manager is concerned with keeping customers, but there is nothing to indicate that it holds more sway than profitability.

The answer is No. There is nothing in the passage to suggest the branch manager will personally benefit from the profitability of the lattes.

The answer is No. This is too extreme. Although the branch manager is concerned that below $3.50, the lattes will no longer be profitable, there is nothing to indicate that the branch manager is not open to further negotiation regarding the price.

The answer is Yes. In order to stay profitable, the price must remain above $3.50. The initial suggestions for the new price were $3.00 and $3.75. 20% on top of $3.00 is $3.60. 20% decreased from $3.75 is $3.00. As long as the new price is between $3.50 and $3.60, it is possible that is can be within 20% of both initial suggestions AND profitable.

The answer is Yes. $3.50 with a free syrup is still more expensive than $3.00 with a free syrup.