Let's relate the given scenario in the passage to the real world.
So there is one company named BBB.It is primarily the one and only major supplier of fasteners to manufacturers in the local town/city. Now, the local customers of BBB have closed down/ are closing down,so the author concludes BBB will lose on its sales volume for next year.
If I see clearly and read properly, I can see that there is no mention of customers of BBB outside it's city. I can surely imagine in my mind that such a loss in sales volume might not happen if BBB finds new and better customers outside the town. Also, what if they buy even more fasteners. The volume of new sales might compensate for those not bought by local customers.
For now, I can only find this flaw in author's logic.
Let's see options :
1. This option means that BBB's customers have taken oven each other's businesses. One has grown at the expense of the other. The manufacturer which closes down will not buy anymore from BBB. But what about the other customer? Will he not be needing more or atleast equal number of fasteners that the other company was asking from BBB. Logically , this option indicates that net sales of fasteners will not be reducing for BBB. So this weakens the author's conclusion. A possible correct choice.
2. This option tells that customer for BBB's customer has reduced it's operations. It essentially adds weight to the fact that the sales of BBB customers will reduce. This in turn will reduce sales of BBB. Strengthens the conclusion. Incorrect choice.
3. Let's say these local manufacturers are customers of BBB. Then why are they buying from National seller. Do they find cost of BBB fastener more ? or do they dislike the quality ?
In any case, it indicates that BBB sales will reduce. Strengthens the conclusion. Incorrect choice.
Now assuming these manufacturers are not BBB customers. They are buying from National wholeseller. It doesn't impact the sales of BBB. The given situation and author's conclusion will stand as it is.
So incorrect choice.
4. BBB carries large inventory. But how does this impact the conclusion. The situation given in the passage remains the same anyways.BBB holds less inventory or large. It's not going to sell more in either case. This option doesnt impact the conclusion. So incorrect choice.
5.This option has stated against what I was using as my weapon against the author. It has stated that BBB has no customer apart from local manufacturers.So it only adds weight to author's conclusion and takes the weight away from my reasoning. So incorrect choice.
Correct answer : A
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