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Re: Company X, whose two divisions provide IT consultancy and IT [#permalink]
can anyone pls give a more detailed explaination
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Re: Company X, whose two divisions provide IT consultancy and IT [#permalink]
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Company X, whose two divisions provide IT consultancy and IT maintenance services respectively, recently reported a 26% jump in its second quarter revenues. During this period, the revenues from its consultancy business grew by nearly 40%

Which of the following statements is best supported by the information above?

A. Company X has shifted its focus from being a maintenance service provider to being a consultancy service provider. - focus of company is Out of scope. This statement could be true, but not necessarily hold good.
B. Company X's consultancy division has surpassed the benchmarks set by the company. - no visibility in stimulus on benchmark
C. The number of customers who bought Company X's consultancy services is more than the numbers of customers who bought its maintenance service. - no visibility on number of customers. Could be true again, but not discussed in stimulus
D. Company X's consultancy business is more profitable than its maintenance business. - Profit is different from revenues. out of scope
E. Company X's revenues from its maintenance business grew at a smaller rate than its overall revenues. - considering % growth of company & consultancy business, this statement can be inferred
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Re: Company X, whose two divisions provide IT consultancy and IT [#permalink]
monty6000 wrote:
Can anyone pls explain why not D ?

It does not need to be more profitable over another. If profit margins are same and the company provides more consultancy services than maintenance services then the company can earn more profit from consultancy.
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Re: Company X, whose two divisions provide IT consultancy and IT [#permalink]
bschool17 wrote:
Source : A local GMAT center

Company X, whose two divisions provide IT consultancy and IT maintenance services respectively, recently reported a 26% jump in its second quarter revenues. During this period, the revenues from its consultancy business grew by nearly 40%.


Which of the following statements is best supported by the information above?


A. Company X has shifted its focus from being a maintenance service provider to being a consultancy service provider.

B. Company X's consultancy division has surpassed the benchmarks set by the company.

C. The number of customers who bought Company X's consultancy services is more than the numbers of customers who bought its maintenance service.

D. Company X's consultancy business is more profitable than its maintenance business.

E. Company X's revenues from its maintenance business grew at a smaller rate than its overall revenues.


Using POE:

A. No info from the passage supports this.

B. Do we know the bench marks? No.

C. Do we know the number of customers? No

D. We don't know the actual figures to compare this.


E. This can be inferred clearly from the passage.
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Re: Company X, whose two divisions provide IT consultancy and IT [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Company X, whose two divisions provide IT consultancy and IT [#permalink]
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