Critical Reasoning (CR) | Re: Magazine publishers can boost newsstand sales of a single issue of a.

­ 1. Cost of Free Gift vs.Discount:
The publisher spends one dollar per magazine copy on a free gift.
Offering a one-dollar discount also costs the publisher one dollar percopy.

2. SalesBoost:

The argument claims that including a gift results in a larger increase in sales than offering adiscount.

3.Cost-Effectiveness:

For including a gift to be more cost-effective, the additional sales generated by the gift need to more than compensate for its cost.


What Option (D)Introduces: Even when there is promotion, newsstands return a quarter or more of the copies they have bought to sell, and the publisher refunds the price the retailer paid for thesecopies.

Why this weakens the argument: If a significant portion of magazines (a quarter or more) are returned by newsstands, the publisher not only have to refund the retailer for these unsold magazines but also loses the one dollar spent on the gift for these returnedcopies


ExampleCalculation: Let's say 100 magazines
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Statistics : Posted by Gemmie • on 04 Nov 2023, 03:23 • Replies 11 • Views 3102

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