The number of digital cameras sold in the past year increased dramatically over the number of digital cameras sold in the previous year. The Chief Executive Officer of the corporation that produces Digicam, a popular brand of digital camera, proposes to increase production of Digicam products.
Which of the following statements, if true, would most strengthen the argument that the Chief Executive Officer’s plan will NOT work?
We need to find a statement, that casts doubt on the CEO's plan.
CEO's plan: Proposes to increase production of Digicam products because number of digital cameras sold in the past year increased dramatically.
A. As a percentage of digital cameras sold, Digicam’s market share decreased over the past twelve months. - incorrectMarket share can decrease even when the sale of Digicam products has increased. (When the percentage increase in sale of digital cameras of other cameras companies increase more than the percentage increase of Digicam digital cameras)
B. The lag time between production and shipment of Digicams has decreased during the last twelve months. - IncorrectIt doesn't cast a doubt on CEO's plan. This only lets us know that the products may be available to the consumers a bit earlier than previous 12 months.
C. Celebrity endorsements have increased Digicam’s brand recognition, but not awareness of the parent corporation. - IncorrectSince brand recognition has increased, there may be chances that the products of digicams may have also increased. This doesn't cast a doubt on CEO's plan of increasing production.
D. Digicam is one of the brands most responsible for the increase in digital camera sales during the last twelve months. - IncorrectThis actually supports the CEO's plan.
E. Sales of Digicam decreased during the last twelve months, despite widespread distribution of coupons in stores and newspapers and on the Internet. - CorrectThis correctly casts a doubt on CEO's plan. Since the sales have decreased, the increase in the sale of digital cameras was due to sale of digital cameras of other companies and thus doesn't call for an increase in production of Digicam products.