Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Jul 1508:00 PM PDT
-09:00 PM PDT
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
Jul 0901:00 PM EDT
-02:00 PM EDT
More Target Test Prep students are earning 100th percentile GMAT scores. Don’t settle for less when the Target Test Prep course gives you everything you need to score high on the GMAT. Start your 5-day free trial today.- Jul 14
10:00 AM PDT
-11:59 PM PDT
GMAT Preparation Online - A limited time sale use code: EXPERTSGLOBAL10 
Jul 1609:30 AM EDT
-11:30 AM EDT
Is INSEAD your dream b-school and you're looking for solid prep and application strategies to get there? Check out Barkavi’s end-to-end journey to know how she did! Get insights into the INSEAD admissions process, know what Adcoms look at, and more!
Jul 1611:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
Jul 1911:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment
14 Oct 2024, 10:11
Kudos
Bookmarks
An internal financial report from the CFO
E-Design's sales and design divisions have performed with remarkable consistency over the past three years. In each of those years, operational costs for the design division have accounted for roughly 55 percent of fixed costs and 25 percent of variable costs while the sales division has accounted for 30 percent of fixed costs and 60 percent of variable costs.
E-Design's sales and design divisions have performed with remarkable consistency over the past three years. In each of those years, operational costs for the design division have accounted for roughly 55 percent of fixed costs and 25 percent of variable costs while the sales division has accounted for 30 percent of fixed costs and 60 percent of variable costs.
Each step performed by the sales division carries the same cost as each step performed by the design division.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
85%
(hard)
Question Stats:
39% (03:01) correct
61%
(02:50)
wrong
based on 763
sessions
History
Date
Time
Result
Not Attempted Yet
1. Which of the following, if true, would most strengthen the VP of Design's argument?
| Performance levels for the sales and design division have varied over the past three years. | |
| All of the products offered by the sales division are produced entirely by the design team. | |
| Most sales division activities cost up to twice as much as most design division activities. | |
| Each step performed by the sales division carries the same cost as each step performed by the design division. | |
| Total costs for each of the sales and design divisions have remained roughly constant. |
ShowHide Answer
Official Answer
Each step performed by the sales division carries the same cost as each step performed by the design division.
Attachment:
Flowchart Sales.jpg [ 36.08 KiB | Viewed 5322 times ]
15 Oct 2024, 12:30
Kudos
Bookmarks
1. We are given the argument by the VP of Design: "It is my position that the sales division should thus be charged with more than 50% of associated costs, with a lower percentage attributed to the design division". Now it's asked to find the statement that best supports the argument.
2. Note that this argument is based on the fact that the sales division does more steps and therefore should be charged with more than 50% of associated costs. This is under the assumption that more steps means more costs associated.
3. Performance levels for the sales and design division have varied over the past three years. This is irrelevant because performance levels have no connection to costs. So, this statement doesn't support the argument best.
4. All of the products offered by the sales division are produced entirely by the design team. Here, this statement would still be irrelevant because it has no connection to costs. So, this statement doesn't support the argument best.
5. Most sales division activities cost up to twice as much as most design division activities. The key word is "most". That means there could be a design division activity that has a cost so high that overweighs all other costs and would weaken the argument. So, this statement doesn't support the argument best.
6. Each step performed by the sales division carries the same cost as each step performed by the design division. Since the sales division does more steps, that means they carry a higher cost overall than the design division. So, this statement does support the argument best.
7. Total costs for each of the sales and design divisions have remained roughly constant. Here, this statement is irrelevant because we're looking at the cost percentages which are relative. So, this statement doesn't support the argument best.
2. Note that this argument is based on the fact that the sales division does more steps and therefore should be charged with more than 50% of associated costs. This is under the assumption that more steps means more costs associated.
3. Performance levels for the sales and design division have varied over the past three years. This is irrelevant because performance levels have no connection to costs. So, this statement doesn't support the argument best.
4. All of the products offered by the sales division are produced entirely by the design team. Here, this statement would still be irrelevant because it has no connection to costs. So, this statement doesn't support the argument best.
5. Most sales division activities cost up to twice as much as most design division activities. The key word is "most". That means there could be a design division activity that has a cost so high that overweighs all other costs and would weaken the argument. So, this statement doesn't support the argument best.
6. Each step performed by the sales division carries the same cost as each step performed by the design division. Since the sales division does more steps, that means they carry a higher cost overall than the design division. So, this statement does support the argument best.
7. Total costs for each of the sales and design divisions have remained roughly constant. Here, this statement is irrelevant because we're looking at the cost percentages which are relative. So, this statement doesn't support the argument best.
11 Jun 2025, 05:14
Kudos
Bookmarks
Hi, Isn't the argument as well linked with more than 50% increase in sales by the sales and delivery team??
Bismuth83
1. We are given the argument by the VP of Design: "It is my position that the sales division should thus be charged with more than 50% of associated costs, with a lower percentage attributed to the design division". Now it's asked to find the statement that best supports the argument.
2. Note that this argument is based on the fact that the sales division does more steps and therefore should be charged with more than 50% of associated costs. This is under the assumption that more steps means more costs associated.
3. Performance levels for the sales and design division have varied over the past three years. This is irrelevant because performance levels have no connection to costs. So, this statement doesn't support the argument best.
4. All of the products offered by the sales division are produced entirely by the design team. Here, this statement would still be irrelevant because it has no connection to costs. So, this statement doesn't support the argument best.
5. Most sales division activities cost up to twice as much as most design division activities. The key word is "most". That means there could be a design division activity that has a cost so high that overweighs all other costs and would weaken the argument. So, this statement doesn't support the argument best.
6. Each step performed by the sales division carries the same cost as each step performed by the design division. Since the sales division does more steps, that means they carry a higher cost overall than the design division. So, this statement does support the argument best.
7. Total costs for each of the sales and design divisions have remained roughly constant. Here, this statement is irrelevant because we're looking at the cost percentages which are relative. So, this statement doesn't support the argument best.
2. Note that this argument is based on the fact that the sales division does more steps and therefore should be charged with more than 50% of associated costs. This is under the assumption that more steps means more costs associated.
3. Performance levels for the sales and design division have varied over the past three years. This is irrelevant because performance levels have no connection to costs. So, this statement doesn't support the argument best.
4. All of the products offered by the sales division are produced entirely by the design team. Here, this statement would still be irrelevant because it has no connection to costs. So, this statement doesn't support the argument best.
5. Most sales division activities cost up to twice as much as most design division activities. The key word is "most". That means there could be a design division activity that has a cost so high that overweighs all other costs and would weaken the argument. So, this statement doesn't support the argument best.
6. Each step performed by the sales division carries the same cost as each step performed by the design division. Since the sales division does more steps, that means they carry a higher cost overall than the design division. So, this statement does support the argument best.
7. Total costs for each of the sales and design divisions have remained roughly constant. Here, this statement is irrelevant because we're looking at the cost percentages which are relative. So, this statement doesn't support the argument best.
