In 2000, Gregory's Grocery had a total of 50 stores in the United States and reported profits of $50 million in 2000. During the next five years, the chain added 20 stores per year for a total of 150 stores in the United States and Canada in 2005. Profits increased each year at a rate of 10 percent.
Which of the following can be concluded based on the passage above?
A. The stores in Canada were not as profitable as those in the United States.
B. Between 2000 and 2005, average revenue per store decreased.
C. On average, the stores were less profitable in 2005 than in 2000.
D. Profit per store, or average profit, will continue to decrease if the chain continues to expand the number of stores.
E. If Gregory's Grocery shuts down some of its stores, average profitability will increase.
[spoiler]OA: I am confused in one thing i.e the difference between Revenue and Profit. Why exactly is B wrong????
If I see option B then initially the average revenue which used to come was 1 million $ per store but if I increase 50 by 5% then it becomes 55 but at the same time the number of stores in 1 year increase to 70,therefore revenue goes less than 1 million USD.
Please clear my doubt.........[/spoiler]
Which of the following can be concluded based on the passage above?
A. The stores in Canada were not as profitable as those in the United States.
B. Between 2000 and 2005, average revenue per store decreased.
C. On average, the stores were less profitable in 2005 than in 2000.
D. Profit per store, or average profit, will continue to decrease if the chain continues to expand the number of stores.
E. If Gregory's Grocery shuts down some of its stores, average profitability will increase.
[spoiler]OA: I am confused in one thing i.e the difference between Revenue and Profit. Why exactly is B wrong????
If I see option B then initially the average revenue which used to come was 1 million $ per store but if I increase 50 by 5% then it becomes 55 but at the same time the number of stores in 1 year increase to 70,therefore revenue goes less than 1 million USD.
Please clear my doubt.........[/spoiler]
