Denoma, a major consumer-electronics maker, had a sizeable : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 20 Jan 2017, 17:05

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

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

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Director
Joined: 06 Jan 2008
Posts: 555
Followers: 2

Kudos [?]: 352 [0], given: 2

Denoma, a major consumer-electronics maker, had a sizeable [#permalink]

### Show Tags

24 May 2008, 07:03
00:00

Difficulty:

(N/A)

Question Stats:

56% (03:07) correct 44% (01:19) wrong based on 15 sessions

### HideShow timer Statistics

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E. During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.
If you have any questions
you can ask an expert
New!
Director
Joined: 23 Sep 2007
Posts: 789
Followers: 5

Kudos [?]: 185 [0], given: 0

Re: CR - electronics [#permalink]

### Show Tags

24 May 2008, 09:50
C
CEO
Joined: 17 May 2007
Posts: 2989
Followers: 60

Kudos [?]: 581 [2] , given: 210

Re: CR - electronics [#permalink]

### Show Tags

25 May 2008, 02:47
2
This post received
KUDOS
saravalli wrote:
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.<-- The argument talks about sales revenue
B. For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s. <-- Irrelevant
C. A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers. <-- AHA if it sells to other consumer electronics products and if their revenues are down then Denoma's revenue could be impacted.
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. <-- doesnt explain anything
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. <-- that doesnt help explain reduction of sales revenue, profit maybe, but not revenue.
Intern
Joined: 17 Mar 2008
Posts: 18
Followers: 0

Kudos [?]: 3 [0], given: 0

Re: CR - electronics [#permalink]

### Show Tags

26 May 2008, 14:33
By POE
A --> The argument is about sales revenue. Not relavant
B --> The argument is about Denoma and not its competitor
C --> It doesnt provide the best possible explanation. Since once you sell the your goods to other manufactures you book profit or loss irrespective of whether the other manufacture sells his goods.
D --> The argument is about consumer electronic industry.
E --> If the earlier models were sold at a discounted price, this could give a explanation of why Denoma's sales revenue was down when compared against retailer's sales revenue.
Manager
Joined: 27 Oct 2009
Posts: 149
Location: Montreal
Schools: Harvard, Yale, HEC
Followers: 1

Kudos [?]: 82 [0], given: 18

Re: CR - electronics [#permalink]

### Show Tags

05 Jan 2011, 14:03
Agree with C what is the OA???
Manager
Joined: 08 Jul 2008
Posts: 148
Followers: 0

Kudos [?]: 3 [0], given: 1

Re: CR - electronics [#permalink]

### Show Tags

06 Jan 2011, 00:49
C
Manager
Joined: 26 Mar 2007
Posts: 87
Concentration: General Management, Leadership
Schools: Thunderbird '15
Followers: 1

Kudos [?]: 155 [0], given: 8

Re: CR - electronics [#permalink]

### Show Tags

06 Jan 2011, 03:32
me too C
Manager
Joined: 04 Sep 2010
Posts: 84
Followers: 1

Kudos [?]: 12 [0], given: 11

Re: CR - electronics [#permalink]

### Show Tags

12 Jun 2011, 01:58
Good question
Denoma toal sales Rev down
But Denoma new model sales rev up

then what caused the total rev down

Answer C gives a plausible answer to this
Manager
Status: Time to apply!
Joined: 24 Aug 2011
Posts: 220
Location: India
Concentration: Finance, Entrepreneurship
GMAT 1: 600 Q48 V25
GMAT 2: 660 Q50 V29
GMAT 3: 690 Q49 V34
GPA: 3.2
WE: Engineering (Computer Software)
Followers: 4

Kudos [?]: 113 [0], given: 166

Re: CR - electronics [#permalink]

### Show Tags

27 Nov 2011, 19:52
bsd_lover wrote:
saravalli wrote:
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.<-- The argument talks about sales revenue
B. For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s. <-- Irrelevant
C. A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers. <-- AHA if it sells to other consumer electronics products and if their revenues are down then Denoma's revenue could be impacted.
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. <-- doesnt explain anything
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. <-- that doesnt help explain reduction of sales revenue, profit maybe, but not revenue.

Nice explanation ..thanks !
_________________

Didn't give up !!! Still Trying!!

Senior Manager
Joined: 13 Aug 2010
Posts: 314
Followers: 1

Kudos [?]: 22 [0], given: 1

Re: Denoma, a major consumer-electronics maker, had a sizeable [#permalink]

### Show Tags

28 Nov 2011, 03:23
+1 for C
BSchool Forum Moderator
Status: Flying over the cloud!
Joined: 16 Aug 2011
Posts: 912
Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 73

Kudos [?]: 602 [0], given: 44

Re: Denoma, a major consumer-electronics maker, had a sizeable [#permalink]

### Show Tags

12 Dec 2011, 22:51
By making components for other electronic manufacturer, the Denoma can raise the revenue although the overall sales does not increase.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Senior Manager
Joined: 25 Nov 2011
Posts: 261
Location: India
Concentration: Technology, General Management
GPA: 3.95
WE: Information Technology (Computer Software)
Followers: 4

Kudos [?]: 165 [0], given: 20

Re: Denoma, a major consumer-electronics maker, had a sizeable [#permalink]

### Show Tags

19 Jan 2012, 08:32
Got confused with A first. Now I understand that the argument is talking about REVENUES but not PROFITS and hence C is the correct answer.
_________________

-------------------------
-Aravind Chembeti

Re: Denoma, a major consumer-electronics maker, had a sizeable   [#permalink] 19 Jan 2012, 08:32
Similar topics Replies Last post
Similar
Topics:
3 Following a major mishap, a pilgrim spot in the country had 2 22 May 2014, 12:33
33 Violin Makers in Italy 15 08 Jul 2013, 12:43
3 Denoma, a major consumer-electronics maker, had a sizeable 1 21 Apr 2012, 05:58
26 Denoma, a major consumer-electronics maker, had a sizeable 25 05 Jan 2012, 20:17
23 CR - Decision Makers 18 25 Feb 2009, 22:18
Display posts from previous: Sort by

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

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.