Which of the following, if True, would most weaken Jonathan's contention?
A) AB Distributor's clients are happy with the company's services.
B) Shipping costs for the industry have significantly increased over the last year.
C) AB Distributor's employees are dissatisfied with the company's working conditions.
D) The shipping intermediary industry has experienced a slowdown overall.
E) Many of AB Distributor's employees are new to the business.

Question

Quizplus · Accepted Answer

B) This would indicate that AB Distributor's shipping costs have increased as well, which would mean that the increase in revenue may be matched by the increase in costs, which indicates that, since profitability is revenue minus costs, the company may not have increased its profitability. Choice A simply indicates that the company is doing business well by its customers and does not indicate the company may not be profitable. Choice C indicates internal problems with the company, but does not indicate that its costs are high and thus does not weaken the case that it is profitable. Choice D does not weaken the case that the company is more profitable, since we already know that AB Distributor's revenue has increased, even if that of other similar companies has not. Choice E is not relevant to whether the company is profitable, given the information in the scenario.

Which of the Following, If True, Would Most Weaken Jonathan's