If the company charges 20% more for a premium television, but has to pay 40% more to produce and market it, then it's more likely that the company makes less money on premium televisions than it does on basic ones. (This is not an absolute slam dunk, but that's okay. You just have to make the argument more likely to be valid.) Given this, the plan to drop the premium televisions and sell only the basic ones is more likely to improve profitability, strengthening the author's case.