Explanation
Reading the question: If and when we get confused by this
prompt or any prompt, we can start with the simplest part and work from there.
We'll use this approach in Reading Comprehension. For example, "exploiting
economies in driving routes" may be unclear, but delivering on seven days
rather than six is clear. So we start with increased delivery time. That tends
to be less cost effective, because of some details about how the deliveries are
done, but the company "expects profits to rise with the change."
Creating a filter: We could treat this as an explain
question, but here's a little trick: When
we have an argument that profits will go up, we can break it into two logical
pieces: i) revenues go up and/or ii) costs go down.
In this case, the delivery cost is not going down--could the new model bring
down some other cost (probably not)? Or increase revenues (more likely)?
We apply the filter, looking for some other cost going
down, or revenues going up. Choice (A) doesn't give us that; it's good news for
the retailer, but this change has already taken effect, so it's already built
into the "before" part of the "before-and-after" comparison that the company is
making. Choice (B) gives us what we're looking for: it describes increased
revenues, and even revenues that exceed costs. Choice (B) passes the filter.
Choice (C) does not give us a rising revenue or lowering cost. Choice (D) is
similar to (A), but inferior, because this retailer could have more customers
without making more revenue, or they might make a little more revenue but not
enough to profit more. Choice (E) basically says there are no one-time costs to
the shift, but that doesn't explain why the difference between revenues and
costs will increase with the change; it still could be less profitable over
time after change on a marginal basis.
Logical proof: if we accept the negation of (B), then
consumer purchases will not increase
sufficiently to increase profits. That fact would highly damage the argument,
so (B) itself, indeed, supports the argument. The correct answer is (B).
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