medium · 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?

  1. Vineyards throughout the wider growing region also posted comparable drops in per-acre yield that year because of the very same regional drought conditions.
  2. The winery's total marketing expenditure increased by nearly 20% that year to promote its smaller harvest as more exclusive.
  3. The drought concentrated sugars in the surviving grapes, letting the winery reclassify much of the harvest as reserve label wine.
  4. Total bottle output, measured in cases sold, declined by roughly the same percentage as the per-acre grape yield that year.
  5. A national wine industry trade group reported that overall bottle prices across the country climbed only modestly that year.

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