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08 Jul 2014, 07:53
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E
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Difficulty:
25%
(medium)
Question Stats:
75% (01:40) correct
25%
(01:46)
wrong
based on 553
sessions
History
Date
Time
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Not Attempted Yet
Source : A local GMAT center
Company X, whose two divisions provide IT consultancy and IT maintenance services respectively, recently reported a 26% jump in its second quarter revenues. During this period, the revenues from its consultancy business grew by nearly 40%
Which of the following statements is best supported by the information above?
A. Company X has shifted its focus from being a maintenance service provider to being a consultancy service provider.
B. Company X's consultancy division has surpassed the benchmarks set by the company.
C. The number of customers who bought Company X's consultancy services is more than the numbers of customers who bought its maintenance service.
D. Company X's consultancy business is more profitable than its maintenance business.
E. Company X's revenues from its maintenance business grew at a smaller rate than its overall revenues.
Company X, whose two divisions provide IT consultancy and IT maintenance services respectively, recently reported a 26% jump in its second quarter revenues. During this period, the revenues from its consultancy business grew by nearly 40%
Which of the following statements is best supported by the information above?
A. Company X has shifted its focus from being a maintenance service provider to being a consultancy service provider.
B. Company X's consultancy division has surpassed the benchmarks set by the company.
C. The number of customers who bought Company X's consultancy services is more than the numbers of customers who bought its maintenance service.
D. Company X's consultancy business is more profitable than its maintenance business.
E. Company X's revenues from its maintenance business grew at a smaller rate than its overall revenues.
03 Sep 2014, 00:52
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Can anyone pls explain why not D ?
imsahlahno
Joined: 15 Sep 2013
Last visit: 14 Apr 2019
Posts: 27
Given Kudos: 26
Concentration: Strategy, Entrepreneurship
Schools: Anderson '18 Darden '18 Johnson '18 ISB '17 Kellogg '18 NUS '18 Haas '18 McCombs '18 (WL) Ross '18 (II)
GMAT 1: 680 Q47 V36
GMAT 2: 740 Q50 V40
GPA: 3.65
Products:
Schools: Anderson '18 Darden '18 Johnson '18 ISB '17 Kellogg '18 NUS '18 Haas '18 McCombs '18 (WL) Ross '18 (II)
GMAT 2: 740 Q50 V40
Posts: 27
03 Sep 2014, 02:11
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monty6000
The question stems refers to the %age increase in the the revenues. Profits = Revenues - Input Cost. Here we do not know the input cost of both the divisions. Thus although the revenues of one division has increased over the last year that does not say anything about the increase or decrease in profits. Increase in revenues of one division also does not give any insight into the comparison of profits of the two divisions
