hard · GMAT Verbal
A boutique vineyard's yield of premium Cabernet grapes fell by 34% per acre after a summer drought, yet the winery's gross margin on wine sales rose by 11 percentage points that same year.
Which of the following, if true, most helps explain this apparent discrepancy?
- Vineyards throughout the wider growing region also posted comparable drops in per-acre yield that year because of the very same regional drought conditions.
- The winery's total marketing expenditure increased by nearly 20% that year to promote its smaller harvest as more exclusive.
- The drought concentrated sugars in the surviving grapes, letting the winery reclassify much of the harvest as reserve label wine.
- Total bottle output, measured in cases sold, declined by roughly the same percentage as the per-acre grape yield that year.
- A national wine industry trade group reported that overall bottle prices across the country climbed only modestly that year.
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