In 2003, the Making Hits Record Company spent 40% of its total budget on the production of ten albums, 30% of
its budget on the marketing of these albums, and the remainder of its budget on overhead costs. In the same year,
the Song Factory Record Company spent 20% of its total budget on the production of 10 albums and 60% of its
budget on the marketing of these albums. Making Hits sold a total of 800,000 copies of the ten records it produced
in 2003, while the Song Factory sold a total of 1,600,000 copies of the ten records it produced in 2003. Assuming
each company met its budget, which of the following conclusions is best supported by the information given
above?
• The amount of money spent on marketing is directly related to the number of copies sold.
• Making Hits spent more money on the production of its albums in 2003 than did the Song Factory.
• Song Factory’s total revenue from the sale of albums produced in 2003 was higher than that of Making Hits.
• In 2003, Making Hits spent a larger percentage of its budget on overhead costs than did the Song Factory.
• The Song Factory sold more copies of its 2003 albums than Making Hits did because the Song Factory spent a
higher percentage of its budget on the marketing of its albums.



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will post some more similar questions 750+ level

Picked C

yup got it ..is D

This is one of those CR problems that's a quant problem in disguise. What they're really asking you to do is crunch the numbers and realize that Making Hits spent 30% of its budget on overhead, whereas the maximum possible that Song Factory could have spent on overhead was 20% of its budget. Because we don't know the actual numbers that those percentages are taken of, we can't compare amounts of money, eliminating A) and B). We don't know the selling price of the albums, eliminating C). And E) suggests a cause and effect relationship that goes to far in reaching for a conclusion. The correct answer, D), demonstrates what is so often true on inference problems: a conservative answer is a better answer.
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How can we assume that the cost grouping of the 2 companies are the same, i.e. that Song Factory Company spent 20% of its budget on overhead costs? It is nowhere said so and one has to assume it. For example, it could easily be that Song F.C spent 10% of its budget on overhead and another 10% on sales agents that the other company didn´t have.

+1 D

Remember that only we have percentages! We don't know how much money exactly spent each company.
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+1 D

Intially went for B but then picked D as percentages were mentioned & not absolute amounts as in B.

Took time deconstructing the question stem
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