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Need help with CR - Reasoning question - GMAT Prep 2.2

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by amandeep.hora » Sun Apr 28, 2013 1:52 pm
Had to upload the image as I could not copy the text from GMAT prep 2.2 application


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Official Answer is D

I was struggling between option C and D

Appreciate your help !

Cheers
Aman
Regards
Aman
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by David@VeritasPrep » Sun Apr 28, 2013 6:16 pm
C is not the answer because we do not care if they are replacing a competitors computer or a PXC model.

We only care that more profits are made.

That means you need to sell more computers of the higher profit - since the same number of computers overall were sold so no way to get more money with greater volume, you need to get more profit per computer.

Well if first-time buyers yield a smaller profit we need fewer of those and more of the upgrade type buyers. That is what choice D gives you.
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by umeshpatil » Tue Apr 30, 2013 9:15 pm
Total PXC computer sold=[New PXC models (has low profit margin)] +[Computers purchased to replace with Powerful PXC computer(has higher profit margin)]

T= A+B

As T is fixed for last and previous years. In D, it is told that A is smaller in last year. As A+B is constant, does it shows B i.e. number replaced computers(with high profit) margin has incresed?

hence D is correct choice.
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