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Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year. This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.
Which of the following, if true, does most to explain the apparently surprising result?
  • a)
    Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.
  • b)
    For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.
  • c)
    A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.
  • d)
    Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.
  • e)
    During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.
Correct answer is option 'E'. Can you explain this answer?
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Denoma, a major consumer-electronics maker, had a sizeable decline in ...
A. Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.
This option suggests that Denoma increased its advertising spending to educate the public about its new models' capabilities. While this may have contributed to higher awareness and sales of Denoma models, it doesn't directly explain the decline in Denoma's overall sales revenue.
B. For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.
This option states that Denoma's major competitors experienced larger declines in revenue compared to Denoma. While it provides a comparison of revenue declines, it doesn't explain why Denoma's sales revenue declined despite the reported growth in sales revenue from Denoma models at electronics retailers.
C. A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.
This option states that a significant portion of Denoma's revenue comes from manufacturing components for other consumer-electronics manufacturers. While it provides information about Denoma's revenue sources, it doesn't directly explain the decline in Denoma's overall sales revenue.
D. Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.
This option highlights that Denoma does not have diversified business lines outside of consumer electronics. It suggests that Denoma may be more vulnerable to declines in retail sales of consumer electronics. While this information is relevant, it doesn't directly explain the decline in Denoma's sales revenue despite the reported growth in sales revenue from Denoma models at electronics retailers.
E. During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.
This option provides a plausible explanation for the decline in Denoma's sales revenue. It suggests that retailers sold the older models of Denoma's products at heavily discounted prices. As a result, the revenue generated from these sales would be lower, contributing to the decline in Denoma's overall sales revenue despite the reported growth in sales revenue from new Denoma models.
Among the options provided, option E is the one that most strongly explains the apparent surprising result of Denoma's decline in sales revenue despite the reported growth in sales revenue from Denoma models at electronics retailers.
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Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year. This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. Can you explain this answer?
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Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year. This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year. This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year. This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. Can you explain this answer?.
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This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. 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This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. 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This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. 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This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year. This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.Which of the following, if true, does most to explain the apparently surprising result?a)Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.b)For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.c)A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.d)Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.e)During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.Correct answer is option 'E'. 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