In 2017, Silverfin Architecture spent 50 percent of its total budget

Question

In 2017, Silverfin Architecture spent 50 percent of its total budget on designing five types of government housing projects, and 20 percent of its budget on lobbying local governments for housing contracts; the firm spent the remainder of its budget on overhead costs. The same year, Marlow & Maddock Architecture spent 30 percent of its total budget on designing five types of government housing projects and 50 percent of its budget on lobbying local governments for housing contracts. Silverfin Architecture secured a total of 80 government housing contracts in 2017, while Marlow & Maddock Architecture secured 160 government housing contracts in 2017.

Assuming each company met its budget, which of the following conclusions is best supported by the information given above?

A. How much money is spent on lobbying local governments for housing contracts is directly related to the number of contracts secured.
B. Silverfin Architecture spent more money on designing government housing projects in 2017 than did Marlow & Maddock Architecture.
C. Marlow & Maddock Architecture’s total revenue from government housing contracts secured in 2017 was higher than that of Silverfin Architecture.
D. Marlow & Maddock Architecture secured more government housing contracts in 2017 than Silverfin Architecture did because the former spent a higher percentage of its budget lobbying local governments.
E. In 2017, Silverfin Architecture spent a larger percentage of its budget on overhead costs than did Marlow & Maddock Architecture.

Rohan271 · Answer

Hi  Bunuel , Can you share the official explanation?

agrasan · Answer

D. Marlow & Maddock Architecture secured more government housing contracts in 2017 than Silverfin Architecture did because the former spent a higher percentage of its budget lobbying local governments.

This  option is wrong  because there is no causation link given in the argument. There can be other reasons why Marlow & Maddock secured higher number of government housing contracts.
 Concept applied:  When X and Y happened together, we can't say that X led to Y without any evidence.

AtharvaDeshmukh · Answer

In 2017, Silverfin Architecture spent 50 percent of its total budget on designing five types of government housing projects, and 20 percent of its budget on lobbying local governments for housing contracts; the firm spent the remainder of its budget on overhead costs. The same year, Marlow & Maddock Architecture spent 30 percent of its total budget on designing five types of government housing projects and 50 percent of its budget on lobbying local governments for housing contracts. Silverfin Architecture secured a total of 80 government housing contracts in 2017, while Marlow & Maddock Architecture secured 160 government housing contracts in 2017.

Assuming each company met its budget, which of the following conclusions is best supported by the information given above?

A. How much money is spent on lobbying local governments for housing contracts is directly related to the number of contracts secured.
B. Silverfin Architecture spent more money on designing government housing projects in 2017 than did Marlow & Maddock Architecture.
C. Marlow & Maddock Architecture’s total revenue from government housing contracts secured in 2017 was higher than that of Silverfin Architecture.
D. Marlow & Maddock Architecture secured more government housing contracts in 2017 than Silverfin Architecture did because the former spent a higher percentage of its budget lobbying local governments.
E. In 2017, Silverfin Architecture spent a larger percentage of its budget on overhead costs than did Marlow & Maddock Architecture.

A conclusion we can derive from the argument is about the percentage divide by both architectures, but there is no information about actual amount spent by each of them. So one may also conclude 20% spent by silverfin can be more amount than 50% spent by Marlow & Maddock on lobbying local government. By this logic we can eliminate all the options but Option E.
Hence E is correct option

dragobreathfire · Answer

Can you please share official explanation

Bunuel · Answer

Experts' Global Explanation:

Mind-map:  Budgets of two architecture companies, SA and MM à SA spent 50 percent on designing homes, 20 percent on lobbying government, and rest on overhead costs à MM spent 30 percent on designing homes and 50 percent on lobbying government à SA received 80 contracts while MM received 160 contracts

Missing-link:  Not needed

Expectation from the correct answer choice:  To be duly deducible from the information in the passage, without any assumption or extrapolation

Note : Please be extra careful when you see numbers/percentages/proportions in CR questions; often, the key lies in the numbers.

A. Trap. This answer choice commits the   classic GMAT error of confusing “percentage" with "absolute numbers”  ; if Silverfin Architecture spent 20 percent of its total budget on lobbying for housing projects while Marlow & Maddock Architecture spent 50 percent on such costs, the   two lobbying costs cannot be compared without knowing the absolute amount of money spent   on the total budget of each company; so, it   cannot be established that Marlow & Maddock Architecture spent more “amount of money” on lobbying local governments  ; consequently, Silverfin Architecture receiving 80 contracts while Marlow & Maddock Architecture receiving 160 contracts does not indicate that the amount of money spent on lobbying local governments is directly related to the number of contracts secured, as the answer choice mentions. Because this answer choice is not deducible from the information in the passage without any assumption or extrapolation, this answer choice is incorrect.

B. This answer choice commits the   classic GMAT error of confusing “percentage" with "absolute numbers”  ; if Silverfin Architecture spent 50 percent of its total budget on designing housing projects while Marlow & Maddock Architecture spent 30 percent on such costs, the   two designing costs cannot be compared without knowing the absolute amount of money spent on the total budget of each company  ; so, it cannot be established that Silverfin Architecture spent “more money” on designing projects than Marlow & Maddock Architecture did, as the answer choice mentions. Because this answer choice is not deducible from the information in the passage without any assumption or extrapolation, this answer choice is incorrect.

C. The argument mentions that Silverfin Architecture received 80 government housing contracts while Marlow & Maddock Architecture received 160 government housing contracts but   provides no information about the revenue generated by any company  ; so, no inference about the “total revenue from government contracts” can be drawn. Because this answer choice is not deducible from the information in the passage without any assumption or extrapolation, this answer choice is incorrect.

D. Trap. The argument mentions that Marlow & Maddock Architecture received more contracts than Silverfin Architecture did but provides no information about the reason for receiving more contracts; it is   possible that Marlow & Maddock Architecture received more contracts for a reason unrelated to lobbying local governments  ; so, it cannot be established that Marlow & Maddock Architecture received more contracts “because” it spent a higher percentage of its budget on lobbying local governments, as the answer choice mentions. Because this answer choice is not deducible from the information in the passage without any assumption or extrapolation, this answer choice is incorrect.

E.  Correct . The argument mentions that Silverfin Architecture spent 50 percent of its budget on designing homes, 20 percent on lobbying government, and rest on overhead costs, suggesting that   Silverfin Architecture spent 30 percent of its budget on overhead costs  ; similarly, the argument mentions that Marlow & Maddock Architecture spent 30 percent of its budget on designing homes and 50 percent on lobbying government, suggesting that   Marlow & Maddock Architecture spent 20 percent of its budget on all other costs including overhead costs  ; so, it can be established that Silverfin Architecture spent a larger percentage of its budget on overhead costs than did Marlow & Maddock Architecture, as the answer choice mentions. Because this answer choice is deducible from the information in the passage without any assumption or extrapolation, this answer choice is correct.

E is the best choice.

Pranavsawant · Answer

Probably the easiest 700+ level question but at the same time throws sooooo much information at you. I guess nice tactic by test makers to kill time XD

realprakhar · Answer

@Bunnel where does it mentions that Marlow & Maddock Architecture spent the remainder of its budget on overhead costs. Even if we know that both the companies met their budget, it is nowhere mentioned that M&M spent it on overhead costs.

In 2017, Silverfin Architecture spent 50 percent of its total budget

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In 2017, Silverfin Architecture spent 50 percent of its total budget

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