XAT 2020 Question 34

Instructions

Read the situation below and answer the 3 associated questions:
The Small Shop, selling computer peripherals, is the only one of its kind in the remote village of Turturunk. Because online purchases take two weeks or more to arrive, The Small Shop is a quick stop for buying items such as pen drives and USB cables. Besides selling computer peripherals, The Small Shop also undertakes repairs of out-of-warranty products.

Question 34

The Small Shop wants to increase the variety of products sold, including expensive ones. However, it is averse to accumulating unsold products, specifically of the expensive kind.
Which of the following is the BEST option if The Small Shop wants to increase the variety of the products it sells?

Solution

We have to choose the option that will provide the best course for the Small Shop to increase the variety of products.

Option B discourages the increase in variety and thus, can be rejected.

Option C mentions a minimum order every month, which could lead to the problem of unsold products. Hence, it can be dismissed.

Option D does not solve the problem of unsold products and also adds the cost of new rental space.

Option E says to exclusively sell expensive products. It will not increase the variety. Also, the expensive products will only form 10% of the total revenue, which is insignificant for such a drastic change.

Option A is the best option, as it ensures the increase in variety as well as solves the problem of unsold products.

Hence, the answer is option A.



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