Critical Reasoning

Holiday receipts-the total sales recorded in the fourth quarter of the year-determine the economic success or failure of many retail businesses. Camco, a retailer selling just one camera model, is an excellent example. Camco's holiday receipts, on average, account for a third of its yearly total receipts and about half of its yearly profits.

If the statements above are true, which of the following must also be true about Camco on the basis of them?

(A) Its fixed expenses per camera sold are higher during the fourth quarter than for any of the other three quarters.
(B) It makes more profit during the first and third quarters combined than during the fourth quarter.
(C) Its per-camera retail price is lower, on average, during the fourth quarter than during any one of the first three quarters.
(D) It makes less profit, on average, for a given dollar amount of sales during the first three quarters combined than during the fourth quarter.
(E) The per-camera price it pays to wholesalers is higher, on average, during the fourth quarter than during any of the other three quarters.

greenwich wrote:Holiday receipts-the total sales recorded in the fourth quarter of the year-determine the economic success or failure of many retail businesses. Camco, a retailer selling just one camera model, is an excellent example. Camco's holiday receipts, on average, account for a third of its yearly total receipts and about half of its yearly profits.

If the statements above are true, which of the following must also be true about Camco on the basis of them?

(A) Its fixed expenses per camera sold are higher during the fourth quarter than for any of the other three quarters.
(B) It makes more profit during the first and third quarters combined than during the fourth quarter.
(C) Its per-camera retail price is lower, on average, during the fourth quarter than during any one of the first three quarters.
(D) It makes less profit, on average, for a given dollar amount of sales during the first three quarters combined than during the fourth quarter.
(E) The per-camera price it pays to wholesalers is higher, on average, during the fourth quarter than during any of the other three quarters.

(d)- question says in last quarter: x/3 receipts but profit is not 1/3 but 1/2 of total: from here it can be deduced company made more profit per dollar in last quarter

greenwich wrote:Holiday receipts-the total sales recorded in the fourth quarter of the year-determine the economic success or failure of many retail businesses. Camco, a retailer selling just one camera model, is an excellent example. Camco's holiday receipts, on average, account for a third of its yearly total receipts and about half of its yearly profits.

If the statements above are true, which of the following must also be true about Camco on the basis of them?

(A) Its fixed expenses per camera sold are higher during the fourth quarter than for any of the other three quarters.
(B) It makes more profit during the first and third quarters combined than during the fourth quarter.
(C) Its per-camera retail price is lower, on average, during the fourth quarter than during any one of the first three quarters.
(D) It makes less profit, on average, for a given dollar amount of sales during the first three quarters combined than during the fourth quarter.
(E) The per-camera price it pays to wholesalers is higher, on average, during the fourth quarter than during any of the other three quarters.

Camco's holiday receipts, on average, account for a third of its yearly total receipts and about half of its yearly profits.
Let:
Total yearly receipts = 300.
Total yearly profit = 100.

Then:
4th quarter profits = (1/2)(100) = 50
Profits for the 1st 3 quarters = 100-50 = 50.
4th quarter receipts = (1/2)(300) = 100.
Receipts for the 1st 3 quarters = 300-100 = 200.

Resulting ratios:
Profits per receipts in the 4th quarter = 50/100 = 1/2, implying 1/2 dollar in profit for every $1 in receipts.
Profits per receipts in the 1st 3 quarters = 50/200 = 1/4, implying 1/4 dollar in profit for every $1 in receipts.

The resulting ratios support answer choice D:
Camco makes less profit, on average, for a given dollar amount of sales during the first three quarters combined than during the fourth quarter.

The correct answer is D.