Set-13; Q-22

[powerthelogic]

• A Doesn't explain Denomaa's drop in sales revenue adequately.
• B Competitors are irrelevant.
• D Doesn't explain why retail revenue grew.
• E Retail revenue should be lower if this were the case.

Answer: C If Demona's overall sales revenue is down, and overall retail electronics sales are down, but retail sales (and, hence, sales revenues) of Demona models is up, then Demona must, ordinarily, sell significant product to a market other than the retail market. C gives us that market--"other consumer-electronics manufacturers.