Sales of microwave ovens have increased considerably over the last

The plan is to increase production of its own model of Microwave oven while continuing the extensive advertising of this product. Any answer choice which says that the present plan will not boost sales is the answer. "C" says that although prices have been reasonable and even after enough advertising the sales have fallen in the previous year. Hence it is very likely that the present plan will not be effective at all. The same advertising if continues will not boost sales.

A. Hitek Appliances’s average inventory of microwave ovens awaiting shipment to retailers has dropped from 1,000 to 750 over the last year.( Wrong Answer : This doesn’t do anything to the argument.)

B. Market research shows that potential customers regard Hitek Appliances’s microwave ovens to be high in quality.( Wrong Answer : This should serve to increase the sales of the product especially in growing market.)

C. Though Hitek Appliances’s microwave ovens are priced comparably to those of its competition, sales of Hitek Appliances’s microwave ovens have fallen in the last year.( Right Answer : This indicates that some factor other than price is affecting the sales of the product, hence increased production may not result in increase of sales.)

D. Hitek Appliances’s microwave oven is one of four brands of microwave oven that have together accounted for the majority of the last year’s increase in sales.( Wrong answer : if this is true then the sales of the product will be higher this year whereas that is not what the question stem indicates.)

E. Although it sells 95% of the microwave ovens that it produces, Hitek Appliances’s share of all microwave oven sales has declined over the last year.( wrong answer : It may be possible that Hitek appliances was not manufacturing the product in sufficient quantitites to meet the demand generated for the product in the market.)

Confusion should be between C and E.

E is incorrect because it doesn't matter for a company whether the share of sales has reduced or not. If it is selling everything it is producing or could see in future, no matter whether that share is 100% of the total or 10% of the total. Company is getting all its profits, so it should be Happy.

Ultimately narrowed down the answer choices to (C) v/s (E)

Here's why I chose (C) over (E)

in (E), we have
E. Although it sells 95% of the microwave ovens that it produces, Hitek Appliances’s share of all microwave oven sales has declined over the last year. - In other words, the market share of Hitek Appliances has declined over the last year. Even though it's overall market share (of oven sales) declined, it could still be true that the firm sold more units of ovens after the production revamp. Hence, (E) leaves enough room to be easily countered. Therefore, eliminate (E)

In (C), we have
C. Though Hitek Appliances’s microwave ovens are priced comparably to those of its competition, sales of Hitek Appliances’s microwave ovens have fallen in the last year. - Now, we know that the price of Hitek's microwave oven was comparable to those of its competition. In other words, Hitek is now on an even playing field with its competitors (in regards to the sale of microwave ovens). Despite being on this even playing field, Hitek's microwave oven sales declined. This means that Hitek cannot expect to increase its sales (of its microwave ovens) by simply increasing the production rate. Hence, (C) is the answer to this question

Official Explanation

The question asks for something that supports a view, making this a Strengthen question. However, the view being strengthened is in the question stem itself: that Hitek Appliances will not increase sales. The gist of the stimulus is that more people are buying microwaves, so Hitek Appliances plans to make more microwaves and continue its present advertising campaign.

Remember that the conclusion to be strengthened is in the question stem: Hitek Appliances will not increase sales. It might seem unlikely, but note that the evidence is about microwave sales in general -- not just Hitek sales. To claim Hitek will not increase sales, it must be assumed that Hitek is not part of the general trend. To strengthen this view, the correct answer will validate the assumption and show why they won't get more sales.

(C) supports the assumption and is correct. This suggests that Hitek is not benefiting from the widespread increase in microwave sales. So, simply making more microwaves will not ensure that they will sell more microwaves.

(A) is a 180, at worst. If inventory is decreasing, that suggests Hitek is selling more and is thus part of the growing trend. That makes it likely they will increase sales.

(B) is a 180. If people think the product is high quality, that suggests Hitek could increase sales.

(D) is a 180. This suggests Hitek is, indeed, part of the current trend and is thus likely to see a continued increase in sales.

(E) may seem tempting, but read carefully. It states that Hitek's share of the market — not the total number of microwaves sold — has declined, and that they are selling almost all of the units they produce. Market share could drop merely due to higher sales by other companies. However, if Hitek can retain a 95% sales rate, then increasing production could still increase sales.

TAKEAWAY: Read the question stem carefully and completely. It may ask for something that goes against the stimulus.