IMO D

I go with D -- It says that magazine publishers will loose money from advertisers as they pay for sapce area/ issue published.

Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine’s plan is instituted.
Which of the following, if true, provides the strongest evidence that the magazine’s profits are likely to decline if the plan is instituted?
(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to mail than a typical current issue would.
But as current issues are reduced so will postage.hence incorrect
(B) The majority of the magazine’s subscribers are less concerned about a possible reduction in the quantity of the magazine’s articles than about a possible loss of the current high quality of its articles.
out of Scope
(C) Many of the magazine’s long-time subscribers would continue their subscriptions even if the subscription price were increased.
If they continue to subscribe then there will be no loss.
(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.
Because advertisers pay on space in magazine, as space decreased revenue will decrease and hence the profit margin
(E) Production costs for the magazine are expected to remain stable.
If production costs remain stable then the profit margin will not drop.

IMO D

raama

I feel the answer will be D