For the purpose of stimulating innovation at TechCorp, one of the comp

Question

For the purpose of stimulating innovation at TechCorp, one of the company’s long-standing goals has been to obtain at least 50 percent of its annual revenues from sales of products that are no more than three years old. Last year, TechCorp achieved this goal, despite the fact that the company introduced no new products during the year.

Which of the following, if true, best explains the results described above?

(A) None of the company’s competitors introduced any new products during the last year.

(B) Scientists at the company report that they are close to breakthroughs that should result in several new products during the coming year.

(C) Sales of some of the company’s older products were discontinued during that last year.

(D) The company has introduced very few new products during the last three years.

(E) Company spending on research and development has increased sharply over the past five years.

yashikaaggarwal · Answer

TechCorp company’s long-standing goals was to obtain at least 50 percent of its annual revenues from sales of products that are no more than three years old. Last year, TechCorp achieved this goal,but didn't introduced any new products during the year.

the following, best explaining the results described above is;

(A) None of the company’s competitors introduced any new products during the last year. ( we can't say for sure that if the techcorp company didn't introduced any product, their competitors also didn't, which resulted in the company's revenue to turn up) (Out of context)

(B) Scientists at the company report that they are close to breakthroughs that should result in several new products during the coming year. (No statistics mentioned regarding scientists of the techcorp company to testify the statement, plus that didn't explain why company is able to get the desired revenue) (Incorrect)

(C) Sales of some of the company’s older products were discontinued during that last year. (This can be the reason why techcorp company products were sold, since the new products might take time to make its niche, techcorp used that period to sold off their products earning revenue) (CORRECT)

(D) The company has introduced very few new products during the last three years. ( No Given Statistics and parameter to conclude this) (Out of Scope)

(E) Company spending on research and development has increased sharply over the past five years. (Again we have no parameter to draw out this conclusion, nor it has any validation to the company's revenue last year). (incorrect)

IMO C

Sajjad1994 · Answer

Explanation

Choice (A)  is not related to the conclusion or main point of the argument.

Choice (B)  is also not related what is intended in the argument.

Choice (C)  helps explain last year’s sales results by suggesting that sales of products three years old and older could have fallen sharply during the year. Thus, the proportion of sales produced by newer products could have grown, even without popular new products.

Choice (D)  is ambiguous and tries to confuse the reader and temper's the reader's pre-thinking.

Choice (E)  is same as A and B.

The correct answer is (C).

napolean92728 · Answer

Let's break it down:  
 Goal:  TechCorp wants  at least 50% of annual revenues  to come from  products no more than three years old .
 Fact:  They  achieved  this goal  last year , even though they  didn't introduce any new products  that year.
We need to  explain how they still reached that 50% threshold  despite no new products being added that year.

Option-by-option analysis:

(A) None of the company’s competitors introduced any new products during the last year. 
 
 Irrelevant. The goal is internal (percent of revenue from recent products), not about market competition. 
 It doesn't explain how TechCorp's  own revenue distribution  changed. 
  Eliminate.

(B) Scientists at the company report that they are close to breakthroughs that should result in several new products during the coming year. 
 
 Future-looking and irrelevant to  last year’s  revenue performance. 
 Doesn’t explain how they met the goal  last year  with no new products. 
  Eliminate.

(C) Sales of some of the company’s older products were discontinued during that last year. 
 
 This  does  help explain the result:
 
 If older products were discontinued,  sales would shift toward newer products  (within the last 3 years). 
 That would increase the  percentage  of revenue from newer products, possibly pushing it above 50%.  
 
 Fits perfectly with the scenario. 
  Best explanation. → Correct answer. ✅

(D) The company has introduced very few new products during the last three years. 
 
 This actually makes the situation  more puzzling , not less. 
 Fewer new products overall should make it  harder  to meet the goal. 
 Does not help explain  how  they succeeded. 
  Eliminate.

(E) Company spending on research and development has increased sharply over the past five years. 
 
 Like (B), this is about potential future products, not about the revenue  last year . 
 Doesn’t explain how revenue from new products made up 50%  this past year . 
  Eliminate.

For the purpose of stimulating innovation at TechCorp, one of the comp

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For the purpose of stimulating innovation at TechCorp, one of the comp

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