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Re: Denoma, a major consumer-electronics maker, had a sizeable decline in [#permalink]
­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.
irrelevant as we concern with revenue and sales
B. For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.
this does not help to solve paradox as it says about the other competitor
C. A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.
it says majority sales for Denoma's are from other manufacturers so even if here it is increased is not quite considerable for whole sales . .
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.
so it says the sales from revenue should not reduce hence not helping to solve paradox
E. During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices
The retailers report sales are for innovative model the answer choice say about the old model.
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Re: Denoma, a major consumer-electronics maker, had a sizeable decline in [#permalink]
Denoma's total sales went down, but retailers sold more Denoma products than before. Weird, right? We need to find the answer choice that best explains this odd situation. (A) talks about Denoma spending more on ads, but that doesn't really tell us why their overall sales still decreased. The key is (C) - it says a big chunk of Denoma's money comes from selling parts to other electronics companies. So even if retailers sold a ton of Denoma's finished products, a drop in sales of Denoma's components to other manufacturers could still tank Denoma's total revenue. (C) does the best job resolving the apparent contradiction between Denoma's slumping sales and the popularity of its products in stores. The other choices just don't explain that as well.
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Re: Denoma, a major consumer-electronics maker, had a sizeable decline in [#permalink]
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