Sample Response with a Score of 6The author of the statement concludes that Elmrose Corporation can increase its
profits by relocating all of its operations and personnel to one office. The evidence
cited concerns moves that the corporation made after 2010. In 2010, the company
housed all of its operations and employees in one office. After 2010, the company
moved to multiple locations and saw its profits decline. In fact, the author states,
the profits of the company declined steadily each year after the expansion to
multiple locations, leading the author to assume that the expansion to multiple
locations was sole the reason for the profit decline.
When looking at this argument and the evidence given, we cannot say with
certainty whether the move to different locations was responsible for the decline
in profits, and whether reversing this would reverse the profit decline. In order to
establish that the author’s argument is valid, we would need to analyze additional
evidence.
The first piece of additional evidence concerns the status of the company’s
profits before the expansion. We know that company profits declined steadily after
2010, but what were they before the company’s moves? Were profits high overall?
Or were they inconsistent, reflecting an up and down pattern? If profits were high
consistently in the years during which the company was in one location, assuming
all other factors were equal, this would strengthen the argument that the move to
multiple locations might have hurt profits. If profits were low or inconsistent before
the moves, this would weaken the argument, suggesting that some factor other
than the company’s location is responsible for its profit decline.
Along with examining Elmrose’s profits before its expansion, we also need to
gather evidence regarding the status of the company’s sales revenue and business
expenses both before and after the expansion. If sales go down or costs go up, or
both happen at once, profits can be decreased. To really understand which factors
are affecting profits, we would need detailed records regarding both revenue and
expenses to see what, if anything, had changed.
If there was a decrease in sales or an increase in costs (or both) that could
not reasonably be attributed to any other factors other than the expansion, this
would strengthen the author’s argument. In this case, the new locations of the
company might be responsible for the reduced revenue, since perhaps customers
might not want to shop at the new locations. Alternatively, the expansion might
be responsible for increased costs, since maintaining multiple locations is likely
to make it more expensive for a company to operate. If, however, revenue or cost
changes could be attributed to other factors not linked to the company’s moves,
this would weaken the argument considerably.
Another area where we might gather evidence concerns advertising. Specifically,
we would need to compare the status of company advertising efforts before and
after the expansion. If advertising efforts had been reduced in scope after the
moves, this would weaken the author’s argument, since the reduction in advertising
might be responsible for lost profits. If, however, advertising efforts had remained
the same or increased after the moves, this would strengthen the argument, since
additional advertising would be expected to result in increased profits, all other
factors being equal.CHAPTER 15 ■ PRACTICE TEST 1 50705-GRE-Test-2018_463-582.indd 507 12/05/17 12:14 pm