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# Corporate Officer: Last year was an unusually poor one for

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Manager
Joined: 23 Apr 2007
Posts: 135
Corporate Officer: Last year was an unusually poor one for  [#permalink]

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19 Jul 2007, 12:52
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Corporate Officer: Last year was an unusually poor one for our chemical division, which has traditionally contributed about 60 percent of the corporation’s profits. It is therefore encouraging that there is the following evidence that the pharmaceutical division is growing stronger: it contributed 45 percent of the corporation’s profits, up from 20 percent the previous year.
On the basis of the facts stated, which of the following is the best critique of the evidence presented above?
(A) The increase in the pharmaceutical division’s contribution to corporation profits could have resulted largely from the introduction of single, important new product.
(B) In multidivisional corporations that have pharmaceutical divisions, over half of the corporation’s profits usually come from the pharmaceuticals.
(C) The percentage of the corporation’s profits attributable to the pharmaceutical division could have increased even if that division’s performance had not improved.
(D) The information cited does not make it possible to determine whether the 20 percent share of profits cited was itself an improvement over the year before.
(E) The information cited does not make it possible to compare the performance of the chemical and pharmaceutical divisions in of the percent of total profits attributable to each.

pls exp ur ans.thanx

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Manager
Joined: 18 Jan 2007
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19 Jul 2007, 13:39
Ok I first looked at this and could not delineate the difference in principal between C and D. Both, ostensibly, referenced the clear weakness in the argument which is a comparison of percentages from one year to the next does itself not quantify improvement because the rest of the corporation could have lagged considerably allowing for a greater percentage of profit to be attributable to the pharmaceutical division even if that division had the same or worse even fiscal performance from the year before.

That said, C and D both expose this weakness equally, but then I realized that the passage says "from 20 percent" not "up 20 percent" meaning D is actually not the same as what C is saying.

Senior Manager
Joined: 03 Jun 2007
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19 Jul 2007, 15:06
I concur
Director
Joined: 25 Oct 2006
Posts: 587

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18 Jan 2009, 21:32
dr908 wrote:
Ok I first looked at this and could not delineate the difference in principal between C and D. Both, ostensibly, referenced the clear weakness in the argument which is a comparison of percentages from one year to the next does itself not quantify improvement because the rest of the corporation could have lagged considerably allowing for a greater percentage of profit to be attributable to the pharmaceutical division even if that division had the same or worse even fiscal performance from the year before.

That said, C and D both expose this weakness equally, but then I realized that the passage says "from 20 percent" not "up 20 percent" meaning D is actually not the same as what C is saying.

thanks for explanation.
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Senior Manager
Joined: 12 Oct 2008
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Re: More of CR  [#permalink]

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18 Jan 2009, 22:26
IMO C...does anybody know the OA for this?
Director
Joined: 01 Aug 2008
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Re: More of CR  [#permalink]

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19 Jan 2009, 13:53
IMO C.
Manager
Joined: 25 Aug 2007
Posts: 113
Location: NYC Baby!!!
Re: More of CR  [#permalink]

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19 Jan 2009, 16:03
I pick C because they are only mentioning the portion that each department contributes to the total profits, and since the chemical dept brought in less this year, the pharm dept portion picked up the remaining percentage and it doesn't mean sales are up, just means they account for more of the profits this year.
VP
Joined: 05 Jul 2008
Posts: 1329
Re: More of CR  [#permalink]

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19 Jan 2009, 18:12
Typical percentage and total Q. C again

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

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Re: More of CR &nbs [#permalink] 19 Jan 2009, 18:12
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