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 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

Increased shipping costs could mean that expenses have risen, potentially offsetting the increase in sales revenue and thus weakening the argument that the company is more profitable solely based on increased revenue.

AB Distributors Is a Company That Serves as a Shipping