Can someone explain why C is incorrect here.
The argument says PXC computers bought by people replacing their computer with powerful models have a higher profit margin. C says that the proprotion of people who replaced their computer is higher last year than the previous year.
D says that the proportion of first time buyers was smaller last year than trhe previous year.
Both looks same to me. What am i missing here?
It does not really make a difference if you are replacing a computer made by another company or by PXC. In either case the cost of replacement is same. Plus, even if your original was from PXC, the profit of the original has already been taken into account in that year.
On the contrary, look at choice D
Total computers sold same. First time buyers are smallest. Therefore, in order to keep the total number of computers sold same, replacement computer buyers have to go up and the profit margin on replacement computers is higher. Hence, with the same number of PC sale, the over $ profit amount goes up.
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