AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable."
Another manager at AB Distributor, Shawna, suggests that if the company's revenue had not increased, it would not have been able to increase its profits. Which of the following points out a flaw in Shawna's reasoning?
Other similar companies have increased their profits too.
Revenue is not always relevant to figuring profitability.
Profitability is not the only objective of the company.
The company can increase revenue only by cutting costs.
It is possible to increase profits by lowering costs.

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The Answer of AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable."
Another manager at AB Distributor, Shawna, suggests that if the company's revenue had not increased, it would not have been able to increase its profits. Which of the following points out a flaw in Shawna's reasoning?
Other similar companies have increased their profits too.
Revenue is not always relevant to figuring profitability.
Profitability is not the only objective of the company.
The company can increase revenue only by cutting costs.
It is possible to increase profits by lowering costs.

AB Distributors Is a Company That Serves as a Shipping