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Difficulty:
15%
(low)
Question Stats:
82% (01:01) correct
18%
(01:19)
wrong
based on 151
sessions
History
Date
Time
Result
Not Attempted Yet
Company X and Company Y are in the business of manufacturing memory cards. Company X sells twice as many memory cards as does Company Y and Company X also has fewer employees than Company Y does. So Company X must be making more profits than Company Y.
Which of the following options best helps to evaluate the argument?
(A) Whether there are any other companies that manufacture memory cards in addition to Company X and Company Y.
(B) Whether both the companies pay similar average salaries to their employees.
(C) Whether Company X will be able to sustain its high sales in the future.
(D) Whether the memory cards of the two companies have similar storage capacities.
(E) Whether Company X is likely to hire more employees in the near future.
Which of the following options best helps to evaluate the argument?
(A) Whether there are any other companies that manufacture memory cards in addition to Company X and Company Y.
(B) Whether both the companies pay similar average salaries to their employees.
(C) Whether Company X will be able to sustain its high sales in the future.
(D) Whether the memory cards of the two companies have similar storage capacities.
(E) Whether Company X is likely to hire more employees in the near future.
13 Oct 2025, 00:47
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The option that best helps to evaluate the argument is (B) Whether both the companies pay similar average salaries to their employees. This addresses a key component of profitability—cost structure in relation to staffing—allowing a clearer assessment of whether selling more with fewer employees necessarily leads to higher profits.
If Company X’s expense per employee is much higher or its gross margins are lower, having higher sales and fewer employees would not guarantee greater profits.
Hence, (B)
If Company X’s expense per employee is much higher or its gross margins are lower, having higher sales and fewer employees would not guarantee greater profits.
Hence, (B)
13 Oct 2025, 01:02
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Argument says that X and Y are memory card manufacturer.
Lets say X sells 100 card whereas Y sells 50 card.
Employees in X 10nos
Employees in Y 12nos
Claim- Profit of X> profit of Y
I.e X Sales-Expenditure> Y sales-Expenditure
We have evaluate whether claim is true or not
What are the cases to increase profit
1. Considering Employees salary similar and no other expenditure difference and price of card is similar approx
2. Employees similar salary and no other expenditure but price high for X because of some benefit over Y.
There must be multiple cases. So we have take the variance test of each option and check.
A. Other company presence not relevant. Eliminate
B. In line with prethinking keep it
C. Future consideration not relevant. Eliminate
D. Features of card is fine but no info about sales or anything related to profit. Eliminate
E. Again future discussion too many assumption will arise. Eliminate
Only B makes some sense for making a comparison. Hence correct
Lets say X sells 100 card whereas Y sells 50 card.
Employees in X 10nos
Employees in Y 12nos
Claim- Profit of X> profit of Y
I.e X Sales-Expenditure> Y sales-Expenditure
We have evaluate whether claim is true or not
What are the cases to increase profit
1. Considering Employees salary similar and no other expenditure difference and price of card is similar approx
2. Employees similar salary and no other expenditure but price high for X because of some benefit over Y.
There must be multiple cases. So we have take the variance test of each option and check.
A. Other company presence not relevant. Eliminate
B. In line with prethinking keep it
C. Future consideration not relevant. Eliminate
D. Features of card is fine but no info about sales or anything related to profit. Eliminate
E. Again future discussion too many assumption will arise. Eliminate
Only B makes some sense for making a comparison. Hence correct
Bunuel
