Identify The ConclusionDiff: Hard
Logic Breakdown
Passage Summary: Tony thinks stores should buy new, cheaper tapes that wear out faster to save money. Anna points out that the tape itself is a tiny part of the price compared to royalties, and buying more tapes means paying more royalties.
Conclusion: Switching to the new videocassettes would not actually be more economical for video rental stores.
Reasoning: The physical tape accounts for only 5 percent of the total cost, while the majority of the expense comes from studio royalties that must be paid for every copy purchased.
Analysis: To identify Anna's conclusion, look at the direction her evidence is moving. She isn't just sharing fun facts about the video industry; she is systematically dismantling Tony's claim that the new tapes are 'significantly more economical.' By pointing out that the savings on the tape are negligible compared to the recurring cost of royalties, she leads the reader to the conclusion that Tony’s math doesn't add up. In the world of business logic, if your 'savings' trigger a massive increase in your biggest expense, you haven't actually saved anything.
Conclusion: Switching to the new videocassettes would not actually be more economical for video rental stores.
Reasoning: The physical tape accounts for only 5 percent of the total cost, while the majority of the expense comes from studio royalties that must be paid for every copy purchased.
Analysis: To identify Anna's conclusion, look at the direction her evidence is moving. She isn't just sharing fun facts about the video industry; she is systematically dismantling Tony's claim that the new tapes are 'significantly more economical.' By pointing out that the savings on the tape are negligible compared to the recurring cost of royalties, she leads the reader to the conclusion that Tony’s math doesn't add up. In the world of business logic, if your 'savings' trigger a massive increase in your biggest expense, you haven't actually saved anything.
Passage Stimulus
Passage Redacted
Unlock Full Passage23.Anna's reply is structured to lead to which one of the following conclusions?
Correct Answer
D
D captures Anna’s point: because cassette cost is a tiny fraction and royalties dominate (and would be paid on extra copies), any savings from cheaper but less durable cassettes will be small or nonexistent.
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