medium · GMAT Verbal

A neighborhood bakery sells out of its fresh bread every single morning, yet the owner insists that she actually loses money on the bread and earns her profit elsewhere in the shop.

Which of the following, if true, best explains how the bakery can sell out of bread daily and still lose money on it?

  1. The bakery deliberately prices its bread below cost to draw in customers, who then buy high-margin pastries and coffee.
  2. The bakery bakes considerably more bread each day than it is able to sell.
  3. Bread is the single most popular item the bakery offers.
  4. The bakery's pastries are priced higher than its loaves of bread.
  5. The owner finds baking bread more enjoyable than other tasks.

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