To increase net profit margins across its retail locations, Apex Electronics plans to eliminate its complimentary home-delivery service for large household appliances. Management reasons that operating delivery trucks incurs substantial fuel and labor expenses without direct customer fees, and that customers will simply choose to transport their purchases home themselves using store pickup options. Therefore, management concludes that eliminating free delivery will reduce operational costs without sacrificing total sales revenue. Which of the following, if true, most seriously weakens the argument above?
- A majority of Apex's appliance customers lack personal vehicles capable of transporting bulky items and would purchase from competing retailers that offer home delivery.Answer
- BDiscontinuing the delivery fleet will reduce Apex's annual commercial vehicle maintenance expenses and insurance premiums.
- CCompeting electronics retailers have recently increased retail prices on small handheld accessories.
- DFuel prices in the region where Apex operates have fluctuated moderately over the preceding five years.
- EStore managers currently spend an average of eight hours per week organizing delivery routes for their respective store locations.
Answer
The argument is most seriously weakened by the evidence that a majority of appliance buyers cannot transport large items themselves and will buy from competitors providing delivery, directly undermining the assumption that sales revenue will remain unaffected.
The argument relies on the central assumption that eliminating free appliance delivery will not decrease sales revenue because customers will easily shift to self-pickup. The correct answer presents new evidence showing that most target customers physically cannot transport large appliances themselves and will turn to competitors who still offer home delivery. This demonstrates that eliminating the delivery service will lead to substantial revenue loss, directly weakening the claim that profit margins will improve.
Step-by-Step Solution
Key Concept
Weakening Causal and Plan-to-Goal Arguments