The Tulips electronics manufacturer came out with a revamped

[BTGmoderatorDC]

The Tulips electronics manufacturer came out with a revamped version of a radio they had once produced. The older model had excellent sound quality. The new version had a more attractive design and was fitted with a display screen. The management department was extremely pleased with the record-high sales figures produced by the new radio although the finance department claimed that the profit earned by the old radio in the same amount of time was higher by two-thirds.

Which of the following inferences is best supported by the statement made above?

A) The screen fitted to the new radios increased its production cost, resulting in a lower profit.
B) Although the new model was cheaper to produce, its marketing proved to be very expensive.
C) The revenues earned by the old model were two-thirds higher than those earned by the new model.
D) Although it had excellent sound quality, the older model cost Tulips less.
E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher.

OA D

Source: Economist GMAT

[nonplus2]

A) The screen fitted to the new radios increased its production cost, resulting in a lower profit. New design might have increased its production cost not screen.
B) Although the new model was cheaper to produce, its marketing proved to be very expensive. Irrelevant
C) The revenues earned by the old model were two-thirds higher than those earned by the new model. Profits are mentioned in stimulus, revenues are not.
D) Although it had excellent sound quality, the older model cost Tulips less. Correct Answer. Production cost of older radio was less than the revamped one.
E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher. New radio sales figure was record-high

Hence, Correct Answer is D