The GMAT Avengers Challenge of the Week: CR Discrepancy – Part 2
Thank you all for joining a successful first session on the always tricky Critical Reasoning Discrepancy problems (for those who missed it, you can click here to read the transcript). Make sure you join Rahul and the rest of the Avengers group on Saturday, Sep 30 at 1:30pm EDT for the final installment of this two-part series.
In the meantime, here’s this week’s challenge problem for you to solve:
In 1987, Fabrico, a clothing manufacturer, sold a total of 2.3 million dollars’ worth of clothing, a 17 percent increase over 1986 sales. In January 1988, however, Fabrico closed one of its clothing factories, citing reduced demand for its products as the major reason.
Which one of the following, if true about 1987, contributes most to a resolution of the apparent discrepancy between the sales figures and the reason offered for closing a factory?
(A) The total worldwide dollar value of clothing sales by manufacturers increased by 5 percent over sales in 1986.
(B) Fabrico’s employees dropped earlier demands for a 25 percent increase in company-paid benefits and a 15 percent increase in hourly wages.
(C) Because of escalating costs for raw materials, prices charged by Fabrico for its products were on average 42 percent higher than they were in 1986.
(D) Fabrico introduced several new styleses of clothing that were generally praised by fashion critics and that sold very well.
(E) Fabrico spent less on capital improvements than it did in 1986, when it added new plant capacity and new equipment.