Question 15 refers to the following passage:
Analyst: Sepoma, a major furniture manufacturer, had a large
decline in sales revenue last year. However, this report is unexpected.
Furniture retailers have stated that although overall sales of furniture
decreased last year, sales of Sepoma furniture actually increased.
- Which of the following, if true, best explains the unexpected situation
above?
A Much of Sepoma’s revenue comes from making parts for other
furniture manufacturers.
B Last year, Sepoma spent more on advertising than it usually does.
C Sepoma’s decline in revenue was less than the average decline in
revenue for its major competitors.
D When revenues are weak, Sepoma is reluctant to find ways to cut
costs.
E In a survey, potential buyers of furniture indicated that they thought
Sepoma furniture was superior to that of most other brands on the
market.
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