Tough one. Here's my reasoning.
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.
Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?
(A) Although it sells all of the telephones that it produces, Mammoth Industries'
share of all telephone sales has declined over the last year.
This is saying that the Mammoth Industries' sales as a proportion of ALL telephone sales (including those of other companies) has declined. We might think that this weakens but we should be careful not to get mixed up between percentages and absolute numbers. It's possible that MI increases their sales yet still have a smaller chunk of the pie.
A less subtle detail is the fact that their share of all sales HAS DECLINED present perfect tense. That's not necessarily an indication that it will continue to decline in the future.
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
This could go both ways. Suppose their logistics improved and they are actually able to get more phones out of the warehouse. Great, that strengthens. On the other hand suppose the shipping time has gone down b/c they aren't getting enough orders. Weakens. So this choice is ambiguous.
(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.
Irrelevant.
(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
This potentially strengthens...MI has a good chunk of the market share.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.
Correct. So despite extensive amounts of advertising...their sales are still dropping. Expanding their production might totally be all for nothing.
Please give me a kudos if you like my reasoning.
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