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Most large retail stores of all goods and brands hold discount sales in the month of November. The original idea of price reduction campaigns in November became popular when it was realized that the sales of products would generally slow down following the Diwali rush. The lack of demand could be solved by the simple solution of reducing prices. There is now an increasing tendency among major chains of stores across the country to have their “November sales” begin before Diwali. The idea behind this trend is to Endeavour to sell the maximum amount of stock at a profit, even if that may not be at the maximum profit.
Which of the following conclusions cannot be drawn from the above?
The incidence of “early” November sales results in lower holdings of stocks with the corollary of lower stock holding costs.
Demand is a function of price; as you lower price, demand increases.
Major stores seem to think it makes sense to have the November sales campaigns pre-Diwali.
The major department stores do not worry as much about profit maximization as they do about sales maximization.
Statement (a) is true as the goods will be sold earlier so the cost of stocking will be reduced.
(b) is clearly true as is directly mentioned in the passage.
(d) is correct as it is clear from the last sentence of the passage that even a small profit is good enough for these stores.
Only (c) conclusion cannot be drawn from the passage..
By: Amit Kumar ProfileResourcesReport error
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