October 20, 2009

Homework #17 Answer

Toy manufacturer: "The MegaBall rubber ball is very expensive to make. We should switch to a cheaper brand of rubber to make the MegaBall."

Marketing analyst: "But the MegaBall sells so well! People buy it because it bounces higher than any other ball. No other kind of rubber bounces that high. We should stick with what we know we can sell."

On which one of the following issues do the speakers above disagree?

A. Whether the rubber used to make the MegaBall is more expensive than other materials.

(A) is incorrect because this fact is not in dispute. The manufacturer makes this claim, and the analyst does not dispute it; rather, the analyst argues that they should continue using the more expensive rubber because its properties are the reason the ball sells so well. In other words, the manufacturer says it's expensive, but the analyst argues that it's worth the extra cost. Both speakers' arguments are compatible with the fact that the rubber is more expensive than other materials.

B. Whether the MegaBall sells as well as it is supposed to sell.

(B) is incorrect because it is also not in dispute. Nothing in the manufacturer's statement suggests he is concerned about sales of the MegaBall; his only concern is the cost of the rubber used to manufacture it. The analyst's statement might suggest that he thinks the manufacturer is unaware of this or has not taken it into consideration, but there is no evidence in the stimulus that this point is under dispute. The manufacturer could still argue for using a cheaper rubber even if he knows that the ball does sell well.

C. Whether the company should make the MegaBall from a different brand of rubber.

(C) is correct because it is the only matter in dispute. The manufacturer wants to switch to a cheaper brand of rubber, and the analyst's response suggests they should continue using the one they have because it's worth the extra cost. That's the only point of contention in the exchange.

D. Whether they should consider what customers want before they make important business decisions.

(D) is incorrect because it is not in dispute in the above exchange. Even though the analyst might be implying that the manufacturer has not considered this, just because he may think so does not make it true. Nothing in the manufacturer's statement suggests that he does not think customer preferences should be considered; the fact that he has a different priority does not mean that he thinks other factors should not be considered.

E. Whether other rubber materials bounce as high as the rubber they are currently using to make the MegaBall.

(E) is incorrect because the properties of the rubber are not in dispute. The only issue is whether the higher-bouncing rubber is worth the extra cost.