To solve this question, let us deploy IMS's four-step technique.

STEP #1 -> IDENTIFY THE QUESTION TYPE

Let us read the question stem to identify the question type.



The stem indicates a strengthening question.

STEP #2 -> X-RAY THE ARGUMENT

In a strengthening question, it is a must to x-ray the argument and deconstruct it. Since we are to support the prediction that Vernon's plan will achieve its goal, we will need to figure out what the plan and the goal actually are. The plan itself becomes the conclusion. We will also need to note the evidence that leads to the plan being formulated. Let us therefore read the argument first and deconstruct it soon after.



GOAL: Boost profits.
PLAN: Outsource those parts of the business that independent suppliers can provide at a lower cost than the company Vernon can itself.
EVIDENCE: Vernon has in recent years experienced a decline in its profits.
REASONING: If those parts of Vernon's business that are spoken of get outsourced, the company's profits will witness a boost.

STEP #3 -> FRAME A SHADOW ANSWER

To frame a shadow answer, we must know what the correct answer should do. In this question, the correct answer must support the prediction that Vernon's plan will achieve its goal.

SHADOW ANSWER: Any situation that leads us to believe that the outsourcing of the parts of business that independent suppliers can provide at a lower cost than Vernon can itself would allow the company to boost its profits.

STEP #4 -> ELIMINATE INCORRECT ANSWERS

Options that do not match the shadow answer can be eliminated.

(A) Among the parts of its business that Vernon does not plan to outsource are some that require standards of accuracy too high for most independent suppliers to provide at a lower cost than Vernon can.| NOT A MATCH | Any info about the parts of business that Vernon does not plan to outsource will obviously not tell us whether or not the outsourcing of the parts of business spoken of will allow the company to boost its profits. | ELIMINATE

(B) Vernon itself acts as an independent supplier of specialized hardware items to certain manufacturers that formerly made those items themselves. | NOT A MATCH | This option suggests that there are other manufacturers that have outsourced the task of supplying specialized hardware items to Vernon; the plan, however, is about Vernon outsourcing its parts of business to other independent suppliers; thus, even if what is stated in this option is true, we will not be able to form any opinion about whether the plan will actually achieve its goal of allowing Vernon to boost its profits. | ELIMINATE

(C) Relatively few manufacturers that start as independent suppliers have been able to expand their business and become direct competitors of the companies they once supplied. | NOT A MATCH | We are not worried about any detail regarding business expansion or direct competition. We are worried about whether the plan at hand will allow Vernon to boost its profits.| ELIMINATE

(D) Vernon plans to select the independent suppliers it will use on the basis of submitted bids. | NOT A MATCH | Whether or not Vernon plans to select the independent suppliers it will use on the basis of submitted bids is irrelevant to figuring out whether the plan will achieve its goal of boosting the company's profits. | ELIMINATE

(E) Attending to certain tasks that Vernon performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Vernon's core business. | MATCHES THE SHADOW ANSWER | The argument categorically mentions that Vernon has in recent years experienced a decline in its profits. So, if the time and effort of top managers would actually have been better spent attending to Vernon's core business instead of attending to tasks that Vernon performs relatively inefficiently, outsourcing those very tasks that do not yield profits will more likely than not allow the company to boost its profits. In other words, the prediction that Vernon's plan will achieve its goal will find support if what is stated in this option is true. | MARK AND MOVE

Hence, (E) is the correct answer.