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Difficulty:
95%
(hard)
Question Stats:
54% (02:41) correct
46%
(02:56)
wrong
based on 1974
sessions
History
Date
Time
Result
Not Attempted Yet
For each of the 8 quarters of 2008-2009, the graph shows a Japanese electronics firm ́s total US sales (rounded to the nearest 1 million US dollars), and the change in the average value of US dollar in Japanese yen, where the change is expressed as a percentage of the dollar ́s value in the first quarter of 2008 (Q1 2008), to the nearest 1 percent. For any given quarter, this data may be used to convert total US sales to their Q1 2008 yen equivalent: a value directly proportional to that quarter ́s total US sales in Q1 2008 yen.
On the basis of the information provided, select from each of the drop-down menus the option that created the most accurate statement.
Q1 2008 yen-equivalent sales were highest in of 2009.
Q1 2008 yen-equivalent sales for Q4 2009 were Q1 2008 yen-equivalent sales for Q4 2008.
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We are given two components in the graph:-
a) Column gives the sales in US $ every quarter.
b) The line gives the % change in value of US$ against yen value in Q1 2008.
Therefore, if we have to find the actual sales relative to Q1 2008, we will have to multiply sales by the change in value of dollars. For example if sales have increased from 1 million $ to 2 million dollars but one dollar now is 2x, where one dollar was x number of yens in Q1 2008, then the actual sales as compared to teh value in Q 1 2008 will be 2 million *2x/x or 4 million dollars.
If one has understood the above, the question are very straightforward.
Highest sales in 2009 under given circumstances: Thr value of dollar in terms of yen is highest in Q4 2009 and the column in that quarter is second highest. Therefore, let us compare Thai with highest column, which is in Q2.
Q2 2009: 25million dollars * 1.12yen-equivalent = 28 million yen(Q1 yen-equivalent)
Q4 2009: 24million dollars * 1.17yen-equivalent = 28.08 million yen(Q1 yen-equivalent)
Answer: Q4 2009
Comparison: Q4 2009 vs Q4 2008
Q4 2009: 24million dollars * 1.17yen-equivalent
Q4 2008: 24million dollars * 1.10yen-equivalent
Height of sales is same as 24, but US dollar has a higher value, so Q 4 2009 will be higher.
Answer Q4 2009 GREATER THAN Q4 2008
_________________
a) Column gives the sales in US $ every quarter.
b) The line gives the % change in value of US$ against yen value in Q1 2008.
Therefore, if we have to find the actual sales relative to Q1 2008, we will have to multiply sales by the change in value of dollars. For example if sales have increased from 1 million $ to 2 million dollars but one dollar now is 2x, where one dollar was x number of yens in Q1 2008, then the actual sales as compared to teh value in Q 1 2008 will be 2 million *2x/x or 4 million dollars.
If one has understood the above, the question are very straightforward.
Highest sales in 2009 under given circumstances: Thr value of dollar in terms of yen is highest in Q4 2009 and the column in that quarter is second highest. Therefore, let us compare Thai with highest column, which is in Q2.
Q2 2009: 25million dollars * 1.12yen-equivalent = 28 million yen(Q1 yen-equivalent)
Q4 2009: 24million dollars * 1.17yen-equivalent = 28.08 million yen(Q1 yen-equivalent)
Answer: Q4 2009
Comparison: Q4 2009 vs Q4 2008
Q4 2009: 24million dollars * 1.17yen-equivalent
Q4 2008: 24million dollars * 1.10yen-equivalent
Height of sales is same as 24, but US dollar has a higher value, so Q 4 2009 will be higher.
Answer Q4 2009 GREATER THAN Q4 2008
_________________
ruis
The context of the data is a bit complicated but the graph as well as the questions are fairly straightforward. Think of a Japanese company operating in US. They will earn revenue in $ but the value of $ value of yen changes. So to understand what they earned in terms of yen, they will need to convert their dollar revenue to yen.
Y axis (left side) gives quarterly sale in million dollars i.e. $22 million, $23 million etc - simple enough. Ignore million in our solution.
Y axis (right side) gives Change in value of $ relative to its value in 'Q1 2008' i.e. the first data point on X axis. So percent change in Q1 2008 will be 0 since that is the base. In Q2 2008, the value of dollar increases by 1%, in Q3 2008 it reduces by 2% (relative to the Q1 2008 value of dollar).
Let's say Q1 2008 dollar value = 100 yen. Then in Q2, value of dollar is 101 yen, in Q3 it is 98 yen etc.
"Q1 2008 yen-equivalent sales" for any quarter will then be (dollar sale for that quarter) * Value of dollar in yen.
Q1 2008 yen-equivalent sales were highest in _______ of 2009.
Compare Q1 and Q4 of 2009.
Q1 2009 = 25 * 112 = 2800 yen
Q4 2009 = 24 * 117 = 2808 yen
For other quarters, dollar sales and change in dollar value is less than these in Q4 so ignore.
Select Q4
Q1 2008 yen-equivalent sales for Q4 2009 were _______ Q1 2008 yen-equivalent sales for Q4 2008.
Compare Q4 2009 and Q4 of 2008. They both have the same dollar sales (bar heights are same) but dollar value increased more in 2009. So yen equivalent sales will be higher in Q4 2009.
Select greater than
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General Discussion
chetan2u
Hi,
I understood it as the opposite. I was dividing sales by the percent change in value of dollar.
Reason being if in 2008 Q1 if I was getting 100 yen at 100$ in 2009 Q4 i will get 100 Yen at 117$.
Where did I go wrong?
ISHAAN96
I have the same problem as I treat it like an inflation rate so I calculate in the opposite side which make them all wrong.
After I re-read it again thoroughly (which we don't usually have this much of time in the exam room), now I understand that Japanese company sell product and got dollar money which then convert to Japanese Yen higher (extra money from higher value of dollar).
I think the exam should show an example on change in the value of dollar so examinees can understand in the same way!
HarshavardhanR
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Harsha
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Can you please help me understand the significance of "Q1 2008 yen-equivalent sales for Q4 2009" in the second part.
I took it as yen rate of Q1 2008 multiplied with Q4 2009 sales and marked equal as my answer
I took it as yen rate of Q1 2008 multiplied with Q4 2009 sales and marked equal as my answer
KarishmaB
What that phrase is saying: “Take the U.S. dollar sales figure for Q4 2009 and convert it into yen using the exchange rate that prevailed in Q1 2008, then compare that converted total to the Q1 2008 sales (also in yen).”
Why? By re-expressing every quarter’s dollar revenues in “Q1 2008 yen,” you strip out the effect of later currency fluctuations and see purely how sales volumes changed.
“Q1 2008 yen‐equivalent sales for Q4 2009” therefore tells you what the Q4 2009 dollar receipts would have been worth in yen if the yen/dollar rate had stayed exactly at the Q1 2008 level.
When you compare that number to “Q1 2008 yen‐equivalent sales for Q4 2008,” you’re asking: after adjusting both quarters back to the same yen/dollar baseline, did the firm actually sell more (or less) goods in Q4 2009 than it did in Q4 2008? That’s why it’s greater than, not equal to.
Why? By re-expressing every quarter’s dollar revenues in “Q1 2008 yen,” you strip out the effect of later currency fluctuations and see purely how sales volumes changed.
“Q1 2008 yen‐equivalent sales for Q4 2009” therefore tells you what the Q4 2009 dollar receipts would have been worth in yen if the yen/dollar rate had stayed exactly at the Q1 2008 level.
When you compare that number to “Q1 2008 yen‐equivalent sales for Q4 2008,” you’re asking: after adjusting both quarters back to the same yen/dollar baseline, did the firm actually sell more (or less) goods in Q4 2009 than it did in Q4 2008? That’s why it’s greater than, not equal to.
Sparsh007
One question
If for the baseline, we consider Yen = Dollar.
So, whenever there is a change, we take it as 10% of the dollar( or yen because we took them as equal) or 12% of the dollar value etc..
We get the same correct answers.
Umm.. have I been able to explain my thought?
If for the baseline, we consider Yen = Dollar.
So, whenever there is a change, we take it as 10% of the dollar( or yen because we took them as equal) or 12% of the dollar value etc..
We get the same correct answers.
Umm.. have I been able to explain my thought?
Your logic of just applying the percentage increase/decrease directly to the USD amount is valid in this context, because:
- The baseline is normalized to 1 (or 100%), so relative changes suffice.
- The problem doesn't ask for actual yen values, just comparative reasoning.
sameeb
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Simple Solution for those in hunt :
Q1 2008 yen equivalent Sales is what both Question stem talk about.
So we simply need : More the multiplication of : US Sales * % change
--> multiplication of bar & line.
_________________
Q1 2008 yen equivalent Sales is what both Question stem talk about.
So we simply need : More the multiplication of : US Sales * % change
--> multiplication of bar & line.
_________________
Cheers,
Anushree
Anushree
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Posts: 153
Updated on: 08 Jan 2026, 02:34
Originally posted by Rickooreoisb on 07 Jan 2026, 23:03.
Last edited by Bunuel on 08 Jan 2026, 02:34, edited 2 times in total.
Last edited by Bunuel on 08 Jan 2026, 02:34, edited 2 times in total.
The grammar rule
“value of X in Y” means:
how much Y you get for 1 unit of X
So:
Wording Means
value of dollar in yen how many yen for 1 dollar
value of yen in dollars how many dollars for 1 yen
value of euro in rupees how many rupees for 1 euro
Always read it as:
“How many ___ per 1 ___?”
Apply it to your question
The text says:
“value of US dollar in Japanese yen”
So read it as:
How many yen do you get for 1 dollar
Therefore:
+10% means
→ 1 dollar buys 10% more yen
−20% means
→ 1 dollar buys 20% fewer yen
There is zero ambiguity.
“value of X in Y” means:
how much Y you get for 1 unit of X
So:
Wording Means
value of dollar in yen how many yen for 1 dollar
value of yen in dollars how many dollars for 1 yen
value of euro in rupees how many rupees for 1 euro
Always read it as:
“How many ___ per 1 ___?”
Apply it to your question
The text says:
“value of US dollar in Japanese yen”
So read it as:
How many yen do you get for 1 dollar
Therefore:
+10% means
→ 1 dollar buys 10% more yen
−20% means
→ 1 dollar buys 20% fewer yen
There is zero ambiguity.
Rickooreoisb
Joined: 18 Jul 2025
Last visit: 02 Sep 2026
Posts: 153
Location: India
Concentration: Finance, Marketing
GPA: 9
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Posts: 153
For question 1 the wording is very confusing
Q1 2008 yen-equivalent sales were highest in <<select>> Q4 of 2009.
My intial thought was to look at value of Q1 2008 and COMPARE IT... why is this wrong
Because the question reads Q1 2008 yen equivalent and all changes in the values of the exchange rate are w.r.t Q1 2008
So this is not about comparison but just giving the base exchange rate to be used.
Q1 2008 yen-equivalent sales were highest in <<select>> Q4 of 2009.
My intial thought was to look at value of Q1 2008 and COMPARE IT... why is this wrong
Because the question reads Q1 2008 yen equivalent and all changes in the values of the exchange rate are w.r.t Q1 2008
So this is not about comparison but just giving the base exchange rate to be used.
Posts: 145
After 3 days of spending time with this 1: Trick is treat 100 dollar = 100 yen in Q1 as its pegged as 0 and then your life becomes easy
lawyeroffduty
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i still don't understand it, can you please explain it to me, it would be very helpful 
Goldenfuture
lawyeroffduty
“Q1 2008 yen-equivalent” names the unit, not the quarter being compared. It means sales converted into yen using the Q1 2008 exchange rate.
So Q1 2008 is just the baseline exchange rate applied to every quarter. You are not comparing anything to Q1 2008 itself. You are comparing all quarters to each other after converting them into the same Q1 2008 yen units.
For more please study solutions above. For example, this one: https://gmatclub.com/forum/for-each-of- ... l#p3543405
Hope it helps.
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