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Denoma, a major consumer-electronics maker, had a sizeable

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Denoma, a major consumer-electronics maker, had a sizeable [#permalink] New post 24 Dec 2005, 09:47
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Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year. This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.

Which of the following, if true, does most to explain the apparently surprising result?

A. Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.
B. For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.
C. A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.
D. Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.
E. During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.
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 [#permalink] New post 24 Dec 2005, 10:52
I will go with C
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 [#permalink] New post 24 Dec 2005, 11:24
Straight C
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 [#permalink] New post 24 Dec 2005, 12:01
C fits
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 [#permalink] New post 24 Dec 2005, 16:24
I also go with C but can any body explain me why its not A?
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 [#permalink] New post 24 Dec 2005, 18:21
It is definitely C.

dahiya, it is not A because it is out of scope. A is talking about advertising costs whereas the passage is only concerned with revenue.
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 [#permalink] New post 25 Dec 2005, 03:23
The company had a decline in "sales revenue", while the retailers sold more of the company's products.

It is not explicitly stated that the overall profit declined too, thus we cannot assume that the advertising costs were unnormaly high.
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 [#permalink] New post 25 Dec 2005, 04:38
I agree with C, but at the same time Why cant the answer be E.

It mentions that retailers have sold the already existing superseded models at reduced prices....which indicates that they might not have bought new models from from Denoma.......
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 [#permalink] New post 25 Dec 2005, 05:56
I ll go with C!
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Re: CR # Denoma [#permalink] New post 25 Dec 2005, 07:42
good question. C is correct.........
Re: CR # Denoma   [#permalink] 25 Dec 2005, 07:42
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