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CR from OG 11th

Expert replies
by maria » Mon May 26, 2008 12:40 pm
a company's two divisions performed with remarkable consistency over the past three years: in each of those years, the pharmaceuticals division has accounted for roughly 20% of dollar sales and 40% of profits, and the chemicals division for the balance.
Regarding the past three years, which of the following can properly be inferred from the statement above?
A. Total dollar sales for each of the company's divisions have remained roughly constant.
B. the pharmaceuticals division has faced stiffer competition in its markets than has the chemicals division.
C. the chemicals division has realized lower profits per dollar of sales than has the pharmaceuticals division.
D. the product mix offered by each of the company's divisions has remained unchanged.
E. highly profitable products accounted for a higher percentage of the chemicals division's sales than of the pharmaceuticals division's.
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Source: — Critical Reasoning |

Re: CR from OG 11th

by chidcguy » Mon May 26, 2008 3:39 pm
maria wrote:a company's two divisions performed with remarkable consistency over the past three years: in each of those years, the pharmaceuticals division has accounted for roughly 20% of dollar sales and 40% of profits, and the chemicals division for the balance.
Regarding the past three years, which of the following can properly be inferred from the statement above?
A. Total dollar sales for each of the company's divisions have remained roughly constant.
B. the pharmaceuticals division has faced stiffer competition in its markets than has the chemicals division.
C. the chemicals division has realized lower profits per dollar of sales than has the pharmaceuticals division.
D. the product mix offered by each of the company's divisions has remained unchanged.
E. highly profitable products accounted for a higher percentage of the chemicals division's sales than of the pharmaceuticals division's.
A is out because we are only given percentages and we do not about the total dollar sales. percentage can be the same and the actual amounts may vary.

B We cannot say this based on the given data

C hold on to it

D Same as B

E reads more than what is given

Lets say the total sales is 1000 and the total profit is 100

PH has sold stuff worth 200$ and made 40 dollars profit

CH has sold stuff worth 800$ of it and made 60 dollars profit

So we can say that the chemical division has lesser profit per dollar sales compared to PH?
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by maria » Mon May 26, 2008 4:22 pm
OA is C.
I get it now. Thank you for your explanation.
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by khanshainur » Tue May 10, 2016 5:55 am
i feel it's C
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