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Corporate Officer: Last year was an unusually poor one for

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Corporate Officer: Last year was an unusually poor one for [#permalink] New post 09 Apr 2005, 10:48
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A
B
C
D
E

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Corporate Officer: Last year was an unusually poor one for our chemical division, which has traditionally contributed about 60 percent of the corporation’s profits. It is therefore encouraging that there is the following evidence that the pharmaceutical division is growing stronger: it contributed 45 percent of the corporation’s profits, up from 20 percent the previous year.
On the basis of the facts stated, which of the following is the best critique of the evidence presented above?
(A) The increase in the pharmaceutical division’s contribution to corporation profits could have resulted largely from the introduction of single, important new product.
(B) In multidivisional corporations that have pharmaceutical divisions, over half of the corporation’s profits usually come from the pharmaceuticals.
(C) The percentage of the corporation’s profits attributable to the pharmaceutical division could have increased even if that division’s performance had not improved.
(D) The information cited does not make it possible to determine whether the 20 percent share of profits cited was itself an improvement over the year before.
(E) The information cited does not make it possible to compare the performance of the chemical and pharmaceutical divisions in of the percent of total profits attributable to each.

pls refute E, i guess its the answer,,,but OA i have is differet!
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Re: Corporate Officer: Last year was an unusually poor one for [#permalink] New post 26 Feb 2013, 07:24
I think the correct answer is C. As the Chemical Division performed badly, it is possible that total profit (from all departments) decreased or remained same during the previous year. But the share of profit from Pharmaceutical Division increased (from 20% to 45%), we are not sure whether the absolute dollar amount increased.

It is possible that the Pharmaceutical Division performed at the same level (or maybe worse) compared to last year but still contribute 45% towards total profit because the Chemical Division did far worse and the total profit figure decreased (thus increasing Pharmaceutical's share).
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Re: Corporate Officer: Last year was an unusually poor one for [#permalink] New post 26 Feb 2013, 07:26
In case of choice E, I think it is refutable as we can compare the relative contribution of two divisions for the previous year (60% or more for Chemical, 20% for Pharma) as well as this year (less than or equal to 55% for Chemical, and 45% for Pharma).
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Re: Corporate Officer: Last year was an unusually poor one for [#permalink] New post 26 Feb 2013, 08:35
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I think It should be C.

Conclusion :- Pharmaceutical division becoming stronger
Evidence :- it's share in total profit has increased from 20% to 45%. Pay close attention here. Increase in share doesn't necessarily mean increase in profit. so this can form the best basis to criticize the evidence.

A) Wrong. We are just concerned about whether there is substantial profit increase in pharmaceutical division. doesn't matter whether it comes from a single product or two.

B) Wrong. irrelevant.

C) Contender. This choice states that without any efforts this divisions share could have increased. Then it can be inferred that other divisions have shown poor performance (Probably the chemical division most) so the share of pharmaceutical division in total profit has increased with making any increase in its profit and without getting stronger.

D) Wrong. Again we are only concerned about increase in current year profit and not that of last year.

E) Wrong. This choice can be shell game answer. This could have contender had it provide the reasons why the information is insufficient to compare the performance of both the divisions.
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Expert Post
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Affiliations: GMAT Club
Joined: 21 Feb 2012
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Re: Corporate Officer: Last year was an unusually poor one for [#permalink] New post 26 Feb 2013, 08:37
Expert's post
I think It should be C.

Conclusion :- Pharmaceutical division becoming stronger
Evidence :- it's share in total profit has increased from 20% to 45%. Pay close attention here. Increase in share doesn't necessarily mean increase in profit. so this can form the best basis to criticize the evidence.

A) Wrong. We are just concerned about whether there is substantial profit increase in pharmaceutical division. doesn't matter whether it comes from a single product or two.

B) Wrong. irrelevant.

C) Contender. This choice states that without any efforts this divisions share could have increased. Then it can be inferred that other divisions have shown poor performance (Probably the chemical division most) so the share of pharmaceutical division in total profit has increased with making any increase in its profit and without getting stronger.

D) Wrong. Again we are only concerned about increase in current year profit and not that of last year.

E) Wrong. This choice can be shell game answer. This could have contender had it provide the reasons why the information is insufficient to compare the performance of both the divisions.
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Re: Corporate Officer: Last year was an unusually poor one for   [#permalink] 26 Feb 2013, 08:37
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