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Re: An analysis of the XO Candy Corporation divided its products into two [#permalink]
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Bunuel wrote:
­An analysis of the XO Candy Corporation divided its products into two categories: chocolate-based candies and non-chocolate-based candies. The analysis shows that, unlike the non-chocolate candies, few chocolate candies sold enough units to be profitable. Nevertheless, stopping production of the unprofitable chocolate candies will not necessarily make the entire company more profitable, because__________________ .

Which of the following most logically completes the passage?

(A) a large proportion of XO’s customers are those who initially bought XO’s chocolate candies and eventually went on to buy other candies made by XO.

(B) XO has recently removed its two lowest-selling chocolate candies from their product line and replaced them with different types of chocolate candies.

(C) the recipes of the chocolate candies date from the 19th century, while the non-chocolate candies were all developed more recently.

(D) the chocolate candies are distributed differently than the non-chocolate candies, as chocolates are more popular on the coasts.

(E) fewer people eat candy at all than they did a decade ago because of growing concern about obesity.



­
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Magoosh Official Explanation:



Answer = (A).

In this situation, the seeming paradox is that an unprofitable product should still be produced. The correct answer will provide us with a reason that product should continue to be produced; (A) correctly does this, providing a logical explanation for the scenario. If the candy is unprofitable, but introduces customers to other products that are profitable, it may make sense in the long run to keep producing both the chocolate and the non-chocolate candies.

The recent replacement of the chocolate candies has nothing to do with whether they should still be produced (B); if they are unprofitable as a group, the company either needs a reason that they in some way add to profits, or it should stop making them.

Similarly, the consumers don’t seem to care about when the recipes for the candies date from (C) when choosing their candy. The fact remains that the chocolate candies are still less popular, and this statement does not explain why.

(D) describes the distribution pattern of the popular and unpopular candies, but doesn’t explain why it might help the company to keep producing the unpopular candies.

(E) would work as an explanation for reduced candy consumption overall, but this company is trying to explain why continuing to produce one type of unpopular candy still makes sense when its other candy is more popular. In this argument, the company is not concerned with the overall level of candy consumption.­
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Re: An analysis of the XO Candy Corporation divided its products into two [#permalink]
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