Cool Games Corporation derives all of its revenues through the sales of video games. Last year, it fell just short of making a profit although it had strong revenues of $200 million worldwide, half from children and half from adults. This year, the company’s sales to children rose 20% to $120 million, but its sales to adults dropped 40% to a disappointing $60 million. One of the most renowned Wall Street analysts had forecasted that Cool Games Corporation would need to at least match its revenues of last year in order to have a chance to make a profit on video games this year. Upon hearing the news of the Cool Games Corporation’s revenue, the analyst concluded that it was not possible for the company to have made a profit this year.
The analyst’s conclusion is based on which of the following assumptions?
A)The total cost and expenses of Cool Games Corporation did not decrease by more than the decrease in revenue for the corporation.
B)Adults usually purchased the more complex and expensive games.
C)Cool Game Corporation increased its marketing efforts to children this year.
D)The average sales of all video game companies decreased significantly this year.
E)Sales to adults are more profitable than sales to children.
Guys ,
Can you pls explain me with negating.
The analyst’s conclusion is based on which of the following assumptions?
A)The total cost and expenses of Cool Games Corporation did not decrease by more than the decrease in revenue for the corporation.
B)Adults usually purchased the more complex and expensive games.
C)Cool Game Corporation increased its marketing efforts to children this year.
D)The average sales of all video game companies decreased significantly this year.
E)Sales to adults are more profitable than sales to children.
Guys ,
Can you pls explain me with negating.
