Critical Reasoning

Any idea, how to solve such questions????


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.

IMO D

Stimulus:

Camco’s holiday receipts, on average, account for a third of its yearly total receipts and about half of its yearly profits.

D is the paraphrase of this part of Stimulus

D is right.
So, lets assume total receipts are 300 USD.
and total profit is 100 USD.

In Q-4. Holiday Receipt = 1/3 * 300 = 100 USD
Profit = 1/2 * 100 = 50 USD

In rest of the year:
Receipt = 2/3 * 300 = 200 USD
and profit = 1/2 * 100 = 50 USD

So in Q-4, for every 2 USD, 1 USD is the profit.
While for the rest of the year, for every 4 USD, 1 USD is the profit.

Hence, D.

OA is (D)

I still feel D should be the answer.