Critical Reasoning

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 percent of dollar sales and 40 percent of
profits, and the chemicals division for the balance.
Which of the following can properly be inferred regarding the past three years 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 chemecials 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 unchaged.
(E) Highly profitable products accounted for a higher percentage of the chemicals division's sales than of those
of the pharmaceuticals divisions.
Please explain " for balance".
Thank you

IMO C

Pharmaceuticals division:
Sales: 20%
Profit: 40%

For the BALANCE means that the chemical division accounted for:
Sales: 80%
Profit: 60%

Thanks.

Dear Aman88
Tk for your explanation.
FYI, I read OG10 and found out the same answer. However, I can not image the balance means 80%, 60%.
Please explain more detail.
thank you.

seamaster1 wrote:Dear Aman88
Tk for your explanation.
FYI, I read OG10 and found out the same answer. However, I can not image the balance means 80%, 60%.
Please explain more detail.
thank you.

It is very helpful to pick numbers for such questions. 'For the balance' will the be more clear.

Assume Total sales = $500
Total profits = $100

Sales of pharmaceutical division is 20% of dollar sales.
0.20*500 = $100
Profits from pharmaceutical division is 40%.
Profits per dollar of sale = 40/100 = 0.4

For the balance part:
Sales of chemical division is 80%.
0.80*500=400
Profits from chemical division is 60%.
Profits per dollar of sale = 60/400 = 0.15

Compare the profits per dollar sale -> 0.15<0.40

From this, we can conclude that C is true.
*you need not do any math in actual, just understand the logic in the question and you'll get it. If required, do math.

I hope its clear now!
Thanks.

Greeting Aman88
It is great explanation.
Thank a lot for your help.
Best Regards.