Gmatisking
Winship estimates that the three largest carriers - Delta, United, and American - each
generate roughly $1 billion annually from the sale of frequent-flier miles to hotels, rental-car companies, and others offering points-for-miles to their customers
A) generate roughly $1 billion annually from the sale of frequent-flier miles to
B) generates roughly $1 billion annually from the sale of frequent-flier miles to
C) from the sale of frequent-flier miles generates roughly $1 billion annually per year,
D) from the sale of frequent-flier miles generate roughly $1 billion annually for
E) generate roughly $1 billion annually from the sale of frequent-flier miles,
When 'each' acts as an adjective and comes before the noun, we usually use a singular noun.
For example
Each carrier generates $1 billion.
When each acts as an adjective and comes after a plural subject, the verb is plural.
The carriers each generate $1 billion.
The carriers sell the frequent flier miles to businesses offering points-for-miles to their customers.
Option (E) implies that they generate $1 billion from the sale of miles, hotels, car rental companies etc. But the carriers are not the ones selling hotels etc. They are selling frequent flier miles to hotels etc. Hence, (E) is incorrect.
They also don't generate the $1 billion FOR hotels etc. They generate this money for themselves by selling to the hotels etc. Hence, (D) is incorrect too.
Answer (A)