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." Which of the following, if true, would most strongly support Jonathan's contention?
A) AB Distributor is a relatively new company.
B) AB Distributor is a for-profit company.
C) AB Distributor's costs have decreased from the previous year.
D) AB Distributor's competitors have had increased revenue.
E) AB Distributor has hired more employees recently.

Question

Quizplus · Accepted Answer

If AB Distributor's costs have decreased from the previous year, then its increased revenue would translate directly into increased profits, supporting Jonathan's contention that the company is now more profitable. The other options do not provide a clear link between the revenue increase and profitability.

AB Distributors Is a Company That Serves as a Shipping