Critical Reasoning

Company WXYZ manufactures and sells only four products: widgets, xylophones, yo-yos and zippers. For the past four years, the company has operated profitably. During that time, it has incurred thirty per cent of its costs manufacturing and distributing xylophones. During the same four years, sales of widgets, yo-yos and zippers have accounted for sixty per cent of the company's revenue.

Which of the following is most strongly supported by the paragraph above?

A. Zippers are more expensive to manufacture than xylophones.
B. Xylophones are the most profitable products produced by WXYZ.
C. Revenues from the sales of yo-yos exceed the costs of producing them.
D. The company's profit margin on xylophones exceeds twenty-five per cent.
E. The revenue of Company WXYZ has not increased in the last four years.

IMO: B

This is a math problem
Profit = revenue-costs

The cost and revenue of xylophones are given in percentage terms. We can compute the profit in percentage terms. So D is the answer

Clearly, D is the answer coz. 10/30 =33.33 > 25 percent.