Question 19

Xorx's plan significantly reduces costs by eliminating the need to invest in a network of car dealerships.

This statement supports the argument by illustrating a significant cost-saving measure that would enhance profitability for Xorx, making the electric car more financially viable in the market.

A) The likely price for the new car is greater than that of previously marketed electric cars.

While this statement acknowledges the high price point of the new car, it does not strengthen the argument regarding profitability or cost-saving measures. It may even suggest a potential barrier to sales, as higher prices could deter some consumers.

B) Not all electric cars on the market in Country X have high-performance capabilities.

This option highlights a competitive advantage for Xorx’s new car, but it does not directly address the cost structure or profitability of the car. It implies that Xorx may attract consumers looking for high performance, yet it fails to strengthen the financial aspect of the argument.

C) The battery in the new car has twice the power, per unit of weight, of the previously best available battery.

This provides an indication of the car's superior technology, which could attract consumers, but it does not relate to the company's production costs or potential profit margins. Thus, it does not significantly bolster the argument's core financial consideration.

D) Each Xorx car would reduce total carbon emissions by about 50 percent compared to a traditional car.

While this statement emphasizes the environmental benefit of the car, which may enhance market appeal, it does not directly impact the profitability or cost-saving strategies of Xorx. Therefore, it does not strengthen the argument regarding the financial viability of the new car.

E) Xorx's plan significantly reduces costs by eliminating the need to invest in a network of car dealerships.

This statement is crucial as it points out a major cost-saving strategy that enhances profitability. Eliminating dealership investments allows for a more streamlined operation and greater potential for profit, directly supporting the argument that Xorx can succeed financially with their new electric car.

Conclusion

The correct answer, E, directly addresses a key aspect of Xorx's business strategy that would enhance profitability, making it the most effective option in strengthening the argument. All other options either focus on market competition or product features without providing substantial evidence of cost reduction or improved financial outcomes, making them less relevant to the core argument.