PrepTest 69, Section 3, Question 18
Computer store manager: Last year we made an average of 13 percent profit on the high-end computer models�those priced over $1,000�that we sold, while low-end models�those priced below $1,000�typically returned at least 25 percent profit. Since there is a limit to how many models we can display and sell, we should sell only low-end models. This would maximize our profits, since we would probably sell as many low-end models if that is all we sold as we would sell both kinds combined if we continued to sell both.
Computer store manager: Last year we made an average of 13 percent profit on the high-end computer models�those priced over $1,000�that we sold, while low-end models�those priced below $1,000�typically returned at least 25 percent profit. Since there is a limit to how many models we can display and sell, we should sell only low-end models. This would maximize our profits, since we would probably sell as many low-end models if that is all we sold as we would sell both kinds combined if we continued to sell both.
Computer store manager: Last year we made an average of 13 percent profit on the high-end computer models�those priced over $1,000�that we sold, while low-end models�those priced below $1,000�typically returned at least 25 percent profit. Since there is a limit to how many models we can display and sell, we should sell only low-end models. This would maximize our profits, since we would probably sell as many low-end models if that is all we sold as we would sell both kinds combined if we continued to sell both.
Computer store manager: Last year we made an average of 13 percent profit on the high-end computer models�those priced over $1,000�that we sold, while low-end models�those priced below $1,000�typically returned at least 25 percent profit. Since there is a limit to how many models we can display and sell, we should sell only low-end models. This would maximize our profits, since we would probably sell as many low-end models if that is all we sold as we would sell both kinds combined if we continued to sell both.
The reasoning in the manager's argument is vulnerable to criticism on which one of the following grounds?
The argument fails to consider the possibility that the money earned on each high-end computer is significantly higher than the money earned on each low-end computer.
The argument fails to address the possibility that, despite the price differential, the store sold as many high-end models as low-end models last year.
The argument ignores the possibility that some customers who come into a computer store expecting to purchase a low-end model end up purchasing a high-end model.
The argument presumes, without providing justification, that the sole objective in managing the computer store should be maximizing profits.
The argument fails to recognize that future sales of low-end computers may not be the same as past sales.
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