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Critical Reasoning (CR) | Re: Clearbell Telephone provides slow-dialing (SD) service to customers fo

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MinhChau789 wrote:

Hello experts andGMATNinja

I found the answer A quite confusing given the following scenario:

Current scenario:

------------------------Fast dialing---Slow dialing---Total

Price per customer-------10---------------8

Cost per customer--------5----------------6

profit per customer-------5----------------2

# of customers-----------3----------------7---------- 10

Total profits--------------15---------------14----------29

New scenario: all customers switch to FD at revenue of 8$ per customer

------------------------Fast dialing

Price per customer------8

Cost per customer-------5

profit per customer------3

# of customers----------10

Total profits--------------30

So basically in this scenario, the proposal to switch all customers to FD would increase totalprofits

­Your "current scenario" seems to go against one of the conditions mentioned in the passage: "FD technology costssubstantially less per average call to provide than does SD". In your model, they
...

Statistics : Posted by GMATNinja • on 22 Sep 2019, 20:35 • Replies 26 • Views 31615



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