Faced with declining profits at its iconic downtown store, the departm

Faced with declining profits at its iconic downtown store, the department store chain has asked a consultancy to investigate the root cause. The consultants have determined that as the number of the store’s customers and the money spent per customer have held steady, the loss of profitability must be due to increased rent on the store’s downtown location. In response, the consultants have suggested that the chain close its downtown store in order to concentrate on its other stores in the pursuit of the company’s mission of increased profitability.

The answer to which of the following questions would be most useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted?

• (A) How long has it been since the downtown store was last renovated?
  Out of context.
• (B) Can the rent for the downtown store be reduced by negotiating with the building owners?
  Since according to consultants, the loss of profitability must be due to increased rent on the store’s downtown location. This question may be useful in evaluating whether the consultants’ recommendation to close the downtown store is warranted.
• (C) What is the current profitability of the chain’s other stores?
  The argument is related to downtown store. Out of context
• (D) Are stores in suburban mall locations increasingly profitable?
  The argument is related to downtown store. Out of context
• (E) Is the chain’s management in agreement with the consultants?

The question does not help evaluate the consultants’ recommendation to close the downtown store

IMO B