A manufacturer can only recoup its retooling costs for redesigning a

A manufacturer can only recoup its retooling costs for redesigning a product if it sells enough of the product to its distributors to pass its break-even point. Unless retail companies believe the product will sell well, however, they will not buy enough of the product from distributors to enable the manufacturer to recoup its costs. Manufacturers are more likely to retool products if the products have scored favorably in market studies or if large advance orders for the redesigned products have come in before the retooling process is started, or both.

Of the following selections, which one can be appropriately inferred from the above passage?


(A) If a manufacturer receives large advance orders for the redesigned product from its distributors, it will recoup its retooling costs. Correct

manufacturer assume it can recoup it retooling cos, so they started retooling process

(B) Retail companies that stock products based on favorable market studies will sell a lot of products. Incorrect

it talks about retailers

(C) A manufacturer that has recouped its retooling costs has sold enough of the redesigned product to pass its break-even point. Incorrect

already know from argument

(D) A manufacturer that did not get many advance orders for a redesigned product did not make a profit. Incorrect

only know about retooling cost, profit is irrelevant, many advance orders not needed, one large advance order is enough for recoup cost

(E) A manufacturer that had enough sales of a redesigned product to pass its break-even point by a wide margin did not make a profit on its sale of the product. Incorrect

it cant be inferred from argument