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3. For each of the following statements about the final year of the 6-year exclusivity period for Formula A, select Yes if the statement is supported by the information in the tabs. Otherwise, select No.



• The company’s total R and D expenditures were greater than those for any other year of the six year exclusivity period for Formula A.

Within Years 1 to 6, Year 6 R and D is 240, and Year 4 R and D is also 240. So Year 6 is not greater than all the others.

Answer: No

• The company’s total R and D expenditures were greater than 10 percent of the company’s total revenue.

In Year 6, total revenue is 2500, so 10 percent is 250. Year 6 R and D is 240, which is not greater than 250.

Answer: No

• Revenue from sales of Formula A accounted for more than 50 percent of the company’s total revenue.

In Year 6, Formula A sales revenue is 1000, while total revenue is 2500. That is 40 percent, so less than 50.

Answer: No
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Hi I am confused on this statement: For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.

So if the given prediction and information proved that the prediction is wrong, should i choose sufficient or insufficient?

poojaarora1818

Ques 1 The company has been granted a 6-year exclusivity period, spanning Years 11-16, for Formula C, a new drug designed to treat a different condition than that treated by Formulas A and B. The company has made the following predictions for Year 11: revenue from sales of Formula B will be US$400 million, and revenue from sales of Formula C will be US$200 million.

For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.

Solution: Combining all the revenues from Formulas A & B sales. The year that shows the least is Year 5.

Ques 2 The company has been granted a 6-year exclusivity period, spanning Years 11-16, for Formula C, a new drug designed to treat a different condition than that treated by Formulas A and B. The company has made the following predictions for Year 11: revenue from sales of Formula B will be US$400 million, and revenue from sales of Formula C will be US$200 million.

For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.

Solution 1) Sufficient --As mentioned in the ques the total revenue from sales of Formula B will be US$400 million and revenue from sales of Formula C will be US$200 million for the year 11. So, when we combine both we get $600 which is less than the t[color=#000000]otal R&D expenditures for Year 10 which is $800.

2) Insufficient-- We only have the predicted revenue for year 11 from the sales of Formula B and Formula C and also we do not have enough information about the revenue for year 10. And, Year 10 only speaks about Formula A & B. So, it is insufficient.

3)Insufficient-- We do not have enough information about the R & D expenditure for the year 11. Not enough data to make such predictions.


Ques 3. For each of the following statements about the final year of the 6-year exclusivity period for Formula A, select Yes if the statement is supported by the information in the tabs. Otherwise, select No.

1) No-- The company's total R&D expenditures were greater than those for any other year of the 6-year exclusive period for Formula A.

2) No-- The company's total R&D expenditures were greater than 10% of the company's total revenue.

3) No-- Revenue from sales of Formula A accounted for more than 50% of the company's total revenue.
[/color]
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Hi I am confused on this statement: For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.

So if the given prediction and information proved that the prediction is wrong, should i choose sufficient or insufficient?



For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.

In this question, you choose Sufficient only if the info lets you confirm the statement is true.

If the info shows the statement is false, pick Insufficient (because you cannot determine it is true).

Check the solution of that question HERE.

Hope it helps.
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Year 6 revenue is 2000, 10% = 200, how is it greater than 240??
Bunuel
3. For each of the following statements about the final year of the 6-year exclusivity period for Formula A, select Yes if the statement is supported by the information in the tabs. Otherwise, select No.



• The company’s total R and D expenditures were greater than those for any other year of the six year exclusivity period for Formula A.

Within Years 1 to 6, Year 6 R and D is 240, and Year 4 R and D is also 240. So Year 6 is not greater than all the others.

Answer: No

• The company’s total R and D expenditures were greater than 10 percent of the company’s total revenue.

In Year 6, total revenue is 2500, so 10 percent is 250. Year 6 R and D is 240, which is not greater than 250.

Answer: No

• Revenue from sales of Formula A accounted for more than 50 percent of the company’s total revenue.

In Year 6, Formula A sales revenue is 1000, while total revenue is 2500. That is 40 percent, so less than 50.

Answer: No
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Year 6 revenue is 2000, 10% = 200, how is it greater than 240??

The 2,000 figure comes from the graph in tab 2, but that graph shows only revenue from sales of Formulas A and B, whereas the statement asks about the company’s total revenue, which is 2,500 in the table in tab 3. So 10% is 250, and 240 is not greater than 250.


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Doesn't statement 2 refer to total R&D expenditures not each individual year? It looks as though total R&D expenditures are greater than 10% of total Rev
Bunuel
3. For each of the following statements about the final year of the 6-year exclusivity period for Formula A, select Yes if the statement is supported by the information in the tabs. Otherwise, select No.



• The company’s total R and D expenditures were greater than those for any other year of the six year exclusivity period for Formula A.

Within Years 1 to 6, Year 6 R and D is 240, and Year 4 R and D is also 240. So Year 6 is not greater than all the others.

Answer: No

• The company’s total R and D expenditures were greater than 10 percent of the company’s total revenue.

In Year 6, total revenue is 2500, so 10 percent is 250. Year 6 R and D is 240, which is not greater than 250.

Answer: No

• Revenue from sales of Formula A accounted for more than 50 percent of the company’s total revenue.

In Year 6, Formula A sales revenue is 1000, while total revenue is 2500. That is 40 percent, so less than 50.

Answer: No
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eteum
Doesn't statement 2 refer to total R&D expenditures not each individual year? It looks as though total R&D expenditures are greater than 10% of total Rev


No. Check the question stem: it asks about the final year of Formula A’s exclusivity period, which is Year 6.

So “total R&D expenditures” means the company’s total R&D spending in Year 6, not the sum across all six years. In Year 6, R&D was 240 and total revenue was 2,500, so it was less than 10%.
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