In 1987, Fabrico, a clothing manufacturer, sold a total of 2

[BTGmoderatorDC]

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 styles 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.

OA C

Source: Veritas Prep

[deloitte247]

Premise: In 1987, Fabrico, a clothing manufacturer, sold a total of 2.3 million dollars' worth of clothing, a 17 percent increase over 1986 sales.

Conclusion: In January 1988, Fabrico closed one of its clothing factories, citing reduced demand for its products as the major reason.

Option A - Incorrect:
We only know about the 17 percent increase over 1986 sales of Fabrico. The dollar value of clothing sales by manufacturers is not in harmony with the argument.

Option B - Incorrect:
In reference to the passage, no information was given about Fabrico's employees. There is no concrete basis to support this option.

Option C - Correct:
According to the passage, the cost of raw materials wasn't specified. Nevertheless, we don't know if the prices charged by Fabrico for its products was 42 percent higher than they were in 1986 because the prices charged by Fabrico was not stated.

Option D - Incorrect:
This claim is baseless because it wasn't stated in the passage that Fabrico introduced several new styles of clothing that were generally praised by fashion critics and solid very well.

Option E - Incorrect:
Neither do we know about the amount Fabrico spent on capital improvement nor the plant capacity and new equipment it added in 1986.