The Smithtown Theatre, which stages old plays, has announced an expansion that
will double its capacity along with its operating costs. The theatre is only slightly
profitable at present. In addition, all of the current customers live in Smithtown,
and the population of the town is not expected to increase in the next several
years. Thus, the expansion of the Smithtown Theatre will prove unprofitable.
Which of the following, if true, would most seriously weaken the argument?
(A) A large movie chain plans to open a new multiplex location in Smithtown
later this year.
(B) Concession sales in the Smithtown Theatre comprise a substantial proportion
of the theatre's revenues.
(C) Many recent arrivals to Smithtown are students that are less likely to attend
the Smithtown Theatre than are older residents.
(D) The expansion would allow the Smithtown Theatre to stage larger, more
popular shows that will attract customers from neighboring towns.
(E) The Board of the Smithtown Theatre often solicits input from residents of
the town when choosing which shows to stage.
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Doesn’t this line "double its capacity along with its operating costs" implies that even if the theatre was able to increase its audience - it will still be not profitable(Profit = Revenue - Running Cost)
So I thought that even if the theatre did manage to increase its audience, its running expenses will increase proportionately - thus profit will remain same. For this reason I picked B - because if refreshment sales accounted for major revenue, then an increase in audience will definitely help.
Moreover the argument states that the population of Smithtown is not expected to increase - but that does not imply that it is already saturated(Maybe there are more bookings than available seats)