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# n analysis of the XO Candy Corporation divided its products into two

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Intern
Joined: 13 Oct 2015
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n analysis of the XO Candy Corporation divided its products into two [#permalink]

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20 Aug 2016, 17:40
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74% (01:15) correct 26% (01:38) wrong based on 213 sessions

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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.
[Reveal] Spoiler: OA
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Farrell D Hehn: MBA
Re: n analysis of the XO Candy Corporation divided its products into two [#permalink]

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22 Aug 2016, 02:46
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Taking a loss on the chocolate candies but they are overall making the company more profitable.

That's my paraphrase of this whole thing, and my focus is on finding an answer that is going to tell me why it's worth it to take a hit with the chocolate candies , because it leads to Greater Revenue overall.

A is the only answer that speaks to that.

Farrell Dyan Hehn, MBA
Admissions Consultant & Verbal Strategist MBAPrepCoach.com
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Farrell Dyan
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"You don't often come across people so perceptive and empathetic." - EM, NYC

Intern
Joined: 24 Sep 2016
Posts: 37
Re: n analysis of the XO Candy Corporation divided its products into two [#permalink]

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21 Oct 2016, 03:12
"Supports" is a pointer that can be used for both inference & strengthen questions. In that case, how do i differentiate between whether the question being asked belongs to Inference / strengthen ?

Can anyone explain this???
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Joined: 05 Oct 2016
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Re: n analysis of the XO Candy Corporation divided its products into two [#permalink]

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02 Sep 2017, 00:48
My reasoning would be : The chocolate candies are popular on the coasts ,but the other candies might be popular elsewhere ,hence it is required for XO to keep producing both varieties ..
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Re: n analysis of the XO Candy Corporation divided its products into two [#permalink]

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02 Sep 2017, 06:50
SARANYA18DASS wrote:
My reasoning would be : The chocolate candies are popular on the coasts ,but the other candies might be popular elsewhere ,hence it is required for XO to keep producing both varieties ..

:
lets take ur reasoning:: non choc. is famous else where ...but still we have in question stem that those choc are non profitable , then why to operate that ..?????..company is earning profit with choc candies...
this answer choice is not giving that explanation.

where as in A -- it is highlighted that selling of one choc is depended upon other --so stopping the production of one type choc can hamper other's sell...
A is best --it gives a reason to ponder on .
Re: n analysis of the XO Candy Corporation divided its products into two   [#permalink] 02 Sep 2017, 06:50
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