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Corporate Officer: Last year was an unusually poor one for [#permalink]
12 Apr 2006, 03:55
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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 corporationâ€™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 corporationâ€™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 divisionâ€™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 corporationâ€™s profits usually come from the pharmaceuticals.
(C) The percentage of the corporationâ€™s profits attributable to the pharmaceutical division could have increased even if that divisionâ€™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.
If you pick an answer, please explain why you picked it.
C for me too . since chemical division's profit went down so as a result the profit percentage of pharma went up ( where in reality the overall profile of pharma division might have been the same ) the percentage increase/decrease is always relative not absolute .