Bunuel wrote:
Bonuses at DSR Industries cannot be awarded unless profits exceed a ten percent return on stockholders’ investments in the company. Higher profits mean higher bonuses. Therefore, bonuses in a year of general economic recession will be considerably lower than bonuses in a year of peak profits at DSR.
The conclusion above depends on the assumption that
The argument is the following:
If it is a recession, bonuses will be low.
(The converse):
If it is a peak, bonuses will be high.
Bunuel wrote:
(A) the firm will have relatively low profits in recession years
If you negate this: "The firm will have high profits in recession", you weaken the argument Bunuel wrote:
(B) the amount represented by a ten percent return on stockholders’ investments in the company will increase from year to year
This does not consider the recessions and booms of the company. Thus, this is irrelevant Bunuel wrote:
(C) profits rarely exceed a ten percent return on stockholders’ investments in the company
This does not provide any insight on when or why profits rarely exceed ten percent of stockholders' investments -- not a required assumptionBunuel wrote:
(D) profits in excess of a ten percent return on stockholders’ investments in the company are all distributed in the form of bonuses
This provides no insight as to the difference of awarded bonuses in peak or recession Bunuel wrote:
(E) bonuses at DSR never drop to zero
Same as my reasoning for D.