An analysis of the XO Candy Corporation divided its products into two

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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.­