A company's two division performed with remarkable : GMAT Critical Reasoning (CR)
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# A company's two division performed with remarkable

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Director
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A company's two division performed with remarkable [#permalink]

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10 Dec 2005, 14:18
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A company's two division performed with remarkable consistency over the past 3 yrs. 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 followng can be inferred regarding the past 3 yrs from the statement above?

1. Total dollar sales for each company's division have remained roughly constant.

2. The pharmaceuticals division has faced stiffer competition in its markets than has chemical division.

3. The chemicals division has realized lower profits per dollar of sales than has the pharmaceutical division

4. The product mix offered by each of the company's divisions has remained unchanged.

5. Highly profitable products accounted for higher percentage of the chemical division's sales than of those of pharmaceutical division.
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10 Dec 2005, 19:02
3. The chemicals division has realized lower profits per dollar of sales than has the pharmaceutical division
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11 Dec 2005, 01:00
HIMALAYA wrote:
3. The chemicals division has realized lower profits per dollar of sales than has the pharmaceutical division

can u explain ur answer.. i wasnt convinced with OG's answer. i thought the wording way way too ambiguous
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11 Dec 2005, 01:59
its 3

since sales for chemical division is 80% and profits 60% both as a percentage of the total
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11 Dec 2005, 06:32
3. The chemicals division has realized lower profits per dollar of sales than has the pharmaceutical division

example would be better for this one:
total sales = 100
P = 20
C = 80

profit, suppose = 30
P = 40% of 30= 12
C = 60% of 30 = 18

now, profits per dollar of sales
for P = 12/20=60%
for C = 18/80=22.5%
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11 Dec 2005, 08:54

Sales of P is 20%, but profit is 40%. Means C's is 80%, but profit is 60%. The ratio of profit to sales is higher for than for C.

A company's two division performed with remarkable consistency over the past 3 yrs. 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
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11 Dec 2005, 16:08
Quote:
the pharmaceuticals division has accounted for roughly 20 percent of dollar sales and 40 percent of profits, and the chemicals division for the balance

Pharm = 20% of revenue, 40% of profits
Chem = 80% of revenue but only 60% of profits
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11 Dec 2005, 18:57
u guys are good.. I would have never been able to guess this answer in 100 yrs..
"the chemical part, accounts for the balance" threw me off.. i didnt had a clue wat it meant..
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13 Dec 2005, 05:01
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13 Dec 2005, 07:06
IAMARYAL wrote:
3. The chemicals division has realized lower profits per dollar of sales than has the pharmaceutical division

example would be better for this one:
total sales = 100
P = 20
C = 80

profit, suppose = 30
P = 40% of 30= 12
C = 60% of 30 = 18

now, profits per dollar of sales
for P = 12/20=60%
for C = 18/80=22.5%

Unquestionably (C). Here`s the proof
Re: CR +OG   [#permalink] 13 Dec 2005, 07:06
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