Instructions

Read the situation below and answer the 3 associated questions:
Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% is second only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.

Question 43

Jagdeep wishes to open a 100% eggless branch in Ramnagar. To explore feasibility, he collected the following facts:
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.

From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST supports Jagdeep’s decision.

Solution

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Statement 3 mentions that the eggless varieties of Le Baguette contain minute traces of egg. This doesn't support the decision taken by Jaydeep. Statement 5 doesn't mention anything about the Ramnagar market for eggless products. Therefore, this neither supports nor weakens the decision. Statements 1, 2 and 4 mention the market value of eggless products in Le Baguette and Ramnagar. Thus, statements 1, 2 and 4 support the decision taken by Jaydeep.

The answer is option C.

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