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rohan.dd.bhatia
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MGMAT CR Guide: smithtown theatre - doubt

by rohan.dd.bhatia Thu Jun 20, 2013 2:18 pm

The Smithtown Theatre, which stages old plays, has announced an expansion that
will double its capacity along with its operating costs. The theatre is only slightly
profitable at present. In addition, all of the current customers live in Smithtown,
and the population of the town is not expected to increase in the next several
years. Thus, the expansion of the Smithtown Theatre will prove unprofitable.
Which of the following, if true, would most seriously weaken the argument?
(A) A large movie chain plans to open a new multiplex location in Smithtown
later this year.
(B) Concession sales in the Smithtown Theatre comprise a substantial proportion
of the theatre's revenues.
(C) Many recent arrivals to Smithtown are students that are less likely to attend
the Smithtown Theatre than are older residents.
(D) The expansion would allow the Smithtown Theatre to stage larger, more
popular shows that will attract customers from neighboring towns.
(E) The Board of the Smithtown Theatre often solicits input from residents of
the town when choosing which shows to stage.

----------------------------------------------------------------------
Doesn’t this line "double its capacity along with its operating costs" implies that even if the theatre was able to increase its audience - it will still be not profitable(Profit = Revenue - Running Cost)
So I thought that even if the theatre did manage to increase its audience, its running expenses will increase proportionately - thus profit will remain same. For this reason I picked B - because if refreshment sales accounted for major revenue, then an increase in audience will definitely help.
Moreover the argument states that the population of Smithtown is not expected to increase - but that does not imply that it is already saturated(Maybe there are more bookings than available seats)
jnelson0612
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Re: MGMAT CR Guide: smithtown theatre - doubt

by jnelson0612 Thu Jul 04, 2013 8:53 pm

rohan.dd.bhatia Wrote:The Smithtown Theatre, which stages old plays, has announced an expansion that
will double its capacity along with its operating costs. The theatre is only slightly
profitable at present. In addition, all of the current customers live in Smithtown,
and the population of the town is not expected to increase in the next several
years. Thus, the expansion of the Smithtown Theatre will prove unprofitable.
Which of the following, if true, would most seriously weaken the argument?
(A) A large movie chain plans to open a new multiplex location in Smithtown
later this year.
(B) Concession sales in the Smithtown Theatre comprise a substantial proportion
of the theatre's revenues.
(C) Many recent arrivals to Smithtown are students that are less likely to attend
the Smithtown Theatre than are older residents.
(D) The expansion would allow the Smithtown Theatre to stage larger, more
popular shows that will attract customers from neighboring towns.
(E) The Board of the Smithtown Theatre often solicits input from residents of
the town when choosing which shows to stage.

----------------------------------------------------------------------
Doesn’t this line "double its capacity along with its operating costs" implies that even if the theatre was able to increase its audience - it will still be not profitable(Profit = Revenue - Running Cost)
So I thought that even if the theatre did manage to increase its audience, its running expenses will increase proportionately - thus profit will remain same. For this reason I picked B - because if refreshment sales accounted for major revenue, then an increase in audience will definitely help.
Moreover the argument states that the population of Smithtown is not expected to increase - but that does not imply that it is already saturated(Maybe there are more bookings than available seats)


I see what you are saying. I was initially attracted to B as well. However, I'm doubling the size of the theater and doubling the cost to run it. The way to make the theater more profitable is to get more people in the door. B is good once we know that more people will come; D actually says that they are likely to come. Does that make sense?
Jamie Nelson
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MdAbuAsad
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Re: MGMAT CR Guide: smithtown theatre - doubt

by MdAbuAsad Mon Sep 19, 2016 5:51 pm

The Smithtown Theatre, a town theatre that stages old Broadway shows, has announced a new expansion that will substantially increase both the capacity and the costs of operating the theatre. Attendance at the Smithtown Theatre is currently just enough for the theatre to cover its present operating costs. In addition, all of the current patrons of the theatre live in Smithtown, and the population of the town is not expected to increase in the next several years. Thus, it seems certain that the expansion of the Smithtown Theatre will prove unprofitable.

Which of the following, if true, would most seriously weaken the argument?

(A) A large movie chain plans to open a new multiplex location in Smithtown later this year.
(B) Concession sales in the Smithtown Theatre comprise a substantial proportion of the theatre's revenues.
(C) Many recent arrivals to Smithtown are students that are less likely to attend the Smithtown Theatre than are older residents.
(D) The expansion would allow the Smithtown Theatre to stage larger, more popular shows that will attract patrons from neighboring towns. .
(E) The Board of the Smithtown Theatre responsible for choosing which shows to stage regularly solicits input from residents of the town.
The correct answer is D.
I've a question about C. Here, C strengthen the argument. But, my question is: how C strengthen the argument?
C) Many recent arrivals to Smithtown are students that are less likely to attend the Smithtown Theatre than are older residents.
''many recent arrivals''? Who are they? Are they coming from outside of the city Smithtown?
But, in the argument, it is clearly said that '' the population of the town is not expected to increase in the next several years''. So, Why ''many recent arrivals'' from out of the city are considered here?
Thanks...
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RonPurewal
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Re: MGMAT CR Guide: smithtown theatre - doubt

by RonPurewal Wed Nov 30, 2016 12:39 am

the issue is ONLY whether the answer choices weaken the argument.

the point of the argument is that the expansion of the theater will be UNPROFITABLE.
the only way to weaken this argument, ultimately, is to provide a good reason why the expansion could lead to additional profits.

choice C clearly does not do this, so, choice C is wrong.

there's no point in debating "strengthen vs. do nothing" in a problem like this, because both of those outcomes are incorrect anyway.