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# The two divisions of a high-tech company have performed

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Manager
Joined: 22 Jan 2012
Posts: 90
Location: India
Concentration: General Management, Technology
GMAT 1: Q39 V29
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WE: Engineering (Consulting)
Followers: 6

Kudos [?]: 86 [1] , given: 9

The two divisions of a high-tech company have performed [#permalink]

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14 Mar 2012, 01:44
1
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Question Stats:

91% (02:04) correct 9% (01:25) wrong based on 54 sessions

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The two divisions of a high-tech company have performed quite consistently over the past five years. In each year, the telecommunications equipment division accounted for 35 percent of profits and 15 percent of revenues, and the high-speed internet division made up the balance. Which of the following can properly be inferred regarding the past five years from the information above?

A. The telecommunications equipment division has made higher profits per dollar than the high-speed internet division.
B. Sales for both divisions have remained flat over the five years.
C. The high-speed-internet market involved tougher competition than the telecommunications equipment market during the past five years.
D. Management devoted a greater number of company resources to the telecommunications equipment division than to the high-speed internet division over the past five years.
E. More profitable products made up a higher percentage of the products offered by the telecommunications division.
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Senior Manager
Joined: 13 Mar 2012
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Kudos [?]: 149 [0], given: 31

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14 Mar 2012, 02:18
A. The telecommunications equipment division has made higher profits per dollar than the high-speed internet division.

as per question:
T= 0.35 P; 0.15 R
I= 0.65 P ; 0.85 R

hence A can be deduced properly.

imo A
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Senior Manager
Status: May The Force Be With Me (D-DAY 15 May 2012)
Joined: 06 Jan 2012
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Kudos [?]: 206 [0], given: 16

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14 Mar 2012, 04:59
Hi,

Ya +1 A

There is a similar question in OG 12
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Manager
Joined: 22 Jan 2012
Posts: 90
Location: India
Concentration: General Management, Technology
GMAT 1: Q39 V29
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WE: Engineering (Consulting)
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Kudos [?]: 86 [0], given: 9

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14 Mar 2012, 05:27
Is there any reason why C couldn't be the right answer ??
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Kudos [?]: 149 [1] , given: 31

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14 Mar 2012, 05:54
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iwillcrackgmat wrote:
Is there any reason why C couldn't be the right answer ??

we have no other information like overall market situation or anything that can reflect the status of the two products separately in the market. we cant predict anything about the market by the information present in the argument. Argument just throws the info that can help us conclude regarding the products in the same company.
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Senior Manager
Joined: 10 Nov 2010
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Kudos [?]: 229 [0], given: 22

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04 Apr 2012, 00:07
whats the OA guys.

And y C is wrong
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Manager
Status: I will not stop until i realise my goal which is my dream too
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Kudos [?]: 48 [0], given: 16

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04 Apr 2012, 07:36
i would go with A too....for the same reason as mentioned by others.... Can the guy who posted question can post the correct answer too?
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Senior Manager
Joined: 10 Nov 2010
Posts: 267
Location: India
Concentration: Strategy, Operations
GMAT 1: 520 Q42 V19
GMAT 2: 540 Q44 V21
WE: Information Technology (Computer Software)
Followers: 5

Kudos [?]: 229 [0], given: 22

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04 Apr 2012, 22:32
B,C & D is new information ---not explicitly mentioned in the passage

B/w A & E

I think A s correct

E---cnt be said about number of products
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Intern
Joined: 20 Mar 2012
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Kudos [?]: 1 [0], given: 1

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10 Apr 2012, 02:12
I think C is answer. Pls explain why it is A?
Manager
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Kudos [?]: 86 [0], given: 9

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14 Apr 2012, 18:55
OA is A

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Manager
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Kudos [?]: 171 [0], given: 4

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22 Apr 2012, 11:44
The two divisions of a high-tech company have performed quite consistently over the past five years. In each year, the telecommunications equipment division accounted for 35 percent of profits and 15 percent of revenues, and the high-speed internet division made up the balance. Which of the following can properly be inferred regarding the past five years from the information above?

Fact 1 - the data provided is for 5 years
Fact 2 - Contribution by each department towards profits & revenue.
No where in the stimulus the explanation for the Contribution by each department towards profits & revenue is provided

A. The telecommunications equipment division has made higher profits per dollar than the high-speed internet division.
-- Looks good. Discusses profits. I'd keep it as a contender.
B. Sales for both divisions have remained flat over the five years.
-- Sales of either department are not discussed in the stimulus. So, cannot infer this.
C. The high-speed-internet market involved tougher competition than the telecommunications equipment market during the past five years.
-- Explanation for why one department fared better than the other. Cannot infer this too.
D. Management devoted a greater number of company resources to the telecommunications equipment division than to the high-speed internet division over the past five years.
-- Discusses the devotion of the management, never discusses in the stimulus. So, cannot infer this too.
E. More profitable products made up a higher percentage of the products offered by the telecommunications division.
-- Explains why one department made more profits than the other. So, this cannot be inferred.

This leaves us with only option A. And if you look closer at A it makes more sense when the information in the stimulus is broken-up like:
telecommunications div - for every 15% revenue --> it leads to 35% profits
high-speed internet div - for every 85% revenue --> it leads to 65% profits
Manager
Joined: 22 Jan 2012
Posts: 90
Location: India
Concentration: General Management, Technology
GMAT 1: Q39 V29
GPA: 3.3
WE: Engineering (Consulting)
Followers: 6

Kudos [?]: 86 [0], given: 9

Re: The two divisions of a high-tech company have performed [#permalink]

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15 Aug 2013, 05:35
explanation is already provided in few replies of this post.
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Re: The two divisions of a high-tech company have performed   [#permalink] 15 Aug 2013, 05:35
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