PrepTest 80, Section 2, Question 2
Five years ago, the hair dryer produced by the Wilson Appliance Company accounted for 50 percent of all sales of hair dryers nationwide. Currently, however, Wilson Appliance's product makes up only 25 percent of such sales. Because of this decline, and because the average net income that Wilson receives per hair dryer sold has not changed over the last 5 years, the company's net income from sales of the product must be only half of what it was 5 years ago.
Five years ago, the hair dryer produced by the Wilson Appliance Company accounted for 50 percent of all sales of hair dryers nationwide. Currently, however, Wilson Appliance's product makes up only 25 percent of such sales. Because of this decline, and because the average net income that Wilson receives per hair dryer sold has not changed over the last 5 years, the company's net income from sales of the product must be only half of what it was 5 years ago.
Five years ago, the hair dryer produced by the Wilson Appliance Company accounted for 50 percent of all sales of hair dryers nationwide. Currently, however, Wilson Appliance's product makes up only 25 percent of such sales. Because of this decline, and because the average net income that Wilson receives per hair dryer sold has not changed over the last 5 years, the company's net income from sales of the product must be only half of what it was 5 years ago.
Five years ago, the hair dryer produced by the Wilson Appliance Company accounted for 50 percent of all sales of hair dryers nationwide. Currently, however, Wilson Appliance's product makes up only 25 percent of such sales. Because of this decline, and because the average net income that Wilson receives per hair dryer sold has not changed over the last 5 years, the company's net income from sales of the product must be only half of what it was 5 years ago.
The reasoning in the argument is flawed because the argument
mistakes a decline in the market share of Wilson Appliance's hair dryer for a decline in the total sales of that product
does not provide specific information about the profits hair dryers generate for the companies that produce them
fails to discuss sales figures for Wilson Appliance's products other than its hair dryers
overlooks the possibility that the retail price of Wilson Appliance's hair dryer may have increased over the past 5 years
provides no independent evidence that Wilson Appliance's hair dryer is one of the company's least profitable products
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