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ᅠᅠA pharmaceutical company (hereafter, the company) developed Formula A, a prescription drug used to treat a common health condition. In the process of developing Formula A, the company also developed Formula B, a prescription drug derived from Formula A and used to treat the same condition.
ᅠᅠFor each prescription drug, the company was granted a 6-year exclusivity period'. a period of six years during which a company holds exclusive rights to produce and sell a drug that it has developed. The 6-year exclusivity period for Formula A spanned Years 1-6, while the 6-year exclusivity period for Formula B spanned Years 5-10.
ᅠᅠFor each prescription drug, the company was granted a 6-year exclusivity period'. a period of six years during which a company holds exclusive rights to produce and sell a drug that it has developed. The 6-year exclusivity period for Formula A spanned Years 1-6, while the 6-year exclusivity period for Formula B spanned Years 5-10.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
87% (01:53) correct
13%
(01:40)
wrong
based on 1048
sessions
History
Date
Time
Result
Not Attempted Yet
Based on the information provided, in which one of the following years were the company's combined revenues from sales of Formulas A and B the least?
| Year 5 | |
| Year 6 | |
| Year 7 | |
| Year 8 | |
| Year 9 |
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
55% (01:57) correct
45%
(01:57)
wrong
based on 1278
sessions
History
Date
Time
Result
Not Attempted Yet
The company has been granted a 6-year exclusivity period, spanning Years 11-16, for Formula C, a new drug designed to treat a different condition than that treated by Formulas A and B. The company has made the following predictions for Year 11: revenue from sales of Formula B will be US$400 million, and revenue from sales of Formula C will be US$200 million.
For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.
For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.
| Sufficient information | Insufficient information | |
| Predicted revenue from sales of Formulas B and C for Year 11 is less than total R&D expenditures for Year 10. | ||
| Predicted total revenue for Year 11 is greater than total revenue for Year 10. | ||
| Predicted total R&D expenditures for Year 11 are less than total R&D expenditures for Year 10. |
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:
49% (02:02) correct
51%
(02:17)
wrong
based on 1325
sessions
History
Date
Time
Result
Not Attempted Yet
For each of the following statements about the final year of the 6-year exclusivity period for Formula A, select Yes if the statement is supported by the information in the tabs. Otherwise, select No.
| Yes | No | |
| The company's total R&D expenditures were greater than those for any other year of the6-year exclusively period for Formula A. | ||
| The company's total R&D expenditures were greater than 10% of the company's total revenue. | ||
| Revenue from sales of Formula A accounted for more than 50% of the company's total revenue. |
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2. The company has been granted a 6-year exclusivity period, spanning Years 11-16, for Formula C, a new drug designed to treat a different condition than that treated by Formulas A and B. The company has made the following predictions for Year 11: revenue from sales of Formula B will be US$400 million, and revenue from sales of Formula C will be US$200 million.
For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.
Using Year 11 predictions (B equals 400, C equals 200) plus the earlier tab information, we should decide whether we have enough information to conclude each statement is true.
• Predicted revenue from sales of Formulas B and C for Year 11 is less than total R and D expenditures for Year 10.
Predicted B plus C in Year 11 is 400 + 200 = 600. Year 10 total R and D is 800. Since 600 is less than 800, this is confirmed true.
Answer: Sufficient information
• Predicted total revenue for Year 11 is greater than total revenue for Year 10.
You are only told predicted sales revenue for B and C, not the company’s total revenue for Year 11. Total revenue could include other revenue sources (including anything besides B and C). So you cannot determine whether Year 11 total revenue exceeds Year 10 total revenue of 4000.
Answer: Insufficient information
• Predicted total R and D expenditures for Year 11 are less than total R and D expenditures for Year 10.
No prediction for Year 11 R and D spending is provided. So you cannot determine this.
Answer: Insufficient information
_________________
For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.
Using Year 11 predictions (B equals 400, C equals 200) plus the earlier tab information, we should decide whether we have enough information to conclude each statement is true.
• Predicted revenue from sales of Formulas B and C for Year 11 is less than total R and D expenditures for Year 10.
Predicted B plus C in Year 11 is 400 + 200 = 600. Year 10 total R and D is 800. Since 600 is less than 800, this is confirmed true.
Answer: Sufficient information
• Predicted total revenue for Year 11 is greater than total revenue for Year 10.
You are only told predicted sales revenue for B and C, not the company’s total revenue for Year 11. Total revenue could include other revenue sources (including anything besides B and C). So you cannot determine whether Year 11 total revenue exceeds Year 10 total revenue of 4000.
Answer: Insufficient information
• Predicted total R and D expenditures for Year 11 are less than total R and D expenditures for Year 10.
No prediction for Year 11 R and D spending is provided. So you cannot determine this.
Answer: Insufficient information
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1. Based on the information provided, in which one of the following years were the company's combined revenues from sales of Formulas A and B the least?
Year 5: about 1400 from A plus about 200 from B equals about 1600
Year 6: 1000 from A plus 1000 from B equals 2000
Year 7: about 800 from A plus about 1600 from B equals about 2400
Year 8: about 100 from A plus about 1900 from B equals about 2000
Year 9: less than 10 from A plus about 2100 from B is a little over 2100
The least combined A plus B revenue is in Year 5.
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_________________
Year 5: about 1400 from A plus about 200 from B equals about 1600
Year 6: 1000 from A plus 1000 from B equals 2000
Year 7: about 800 from A plus about 1600 from B equals about 2400
Year 8: about 100 from A plus about 1900 from B equals about 2000
Year 9: less than 10 from A plus about 2100 from B is a little over 2100
The least combined A plus B revenue is in Year 5.
Attachment:
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Attachment:
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3. For each of the following statements about the final year of the 6-year exclusivity period for Formula A, select Yes if the statement is supported by the information in the tabs. Otherwise, select No.
• The company’s total R and D expenditures were greater than those for any other year of the six year exclusivity period for Formula A.
Within Years 1 to 6, Year 6 R and D is 240, and Year 4 R and D is also 240. So Year 6 is not greater than all the others.
Answer: No
• The company’s total R and D expenditures were greater than 10 percent of the company’s total revenue.
In Year 6, total revenue is 2500, so 10 percent is 250. Year 6 R and D is 240, which is not greater than 250.
Answer: No
• Revenue from sales of Formula A accounted for more than 50 percent of the company’s total revenue.
In Year 6, Formula A sales revenue is 1000, while total revenue is 2500. That is 40 percent, so less than 50.
Answer: No
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_________________
• The company’s total R and D expenditures were greater than those for any other year of the six year exclusivity period for Formula A.
Within Years 1 to 6, Year 6 R and D is 240, and Year 4 R and D is also 240. So Year 6 is not greater than all the others.
Answer: No
• The company’s total R and D expenditures were greater than 10 percent of the company’s total revenue.
In Year 6, total revenue is 2500, so 10 percent is 250. Year 6 R and D is 240, which is not greater than 250.
Answer: No
• Revenue from sales of Formula A accounted for more than 50 percent of the company’s total revenue.
In Year 6, Formula A sales revenue is 1000, while total revenue is 2500. That is 40 percent, so less than 50.
Answer: No
Attachment:
GMAT-Club-Forum-0956mt4a.png [ 32.33 KiB | Viewed 2747 times ]
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General Discussion
Posts: 1
Hi I am confused on this statement: For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.
So if the given prediction and information proved that the prediction is wrong, should i choose sufficient or insufficient?
So if the given prediction and information proved that the prediction is wrong, should i choose sufficient or insufficient?
poojaarora1818
tommyjacob
For each of the following statements about the company, select Sufficient information if the given predictions and the information in the tabs provide sufficient information to determine that the statement is true. Otherwise, select Insufficient information.
In this question, you choose Sufficient only if the info lets you confirm the statement is true.
If the info shows the statement is false, pick Insufficient (because you cannot determine it is true).
Check the solution of that question HERE.
Hope it helps.
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Year 6 revenue is 2000, 10% = 200, how is it greater than 240??
Bunuel
SlowLine
The 2,000 figure comes from the graph in tab 2, but that graph shows only revenue from sales of Formulas A and B, whereas the statement asks about the company’s total revenue, which is 2,500 in the table in tab 3. So 10% is 250, and 240 is not greater than 250.
Attachment:
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Doesn't statement 2 refer to total R&D expenditures not each individual year? It looks as though total R&D expenditures are greater than 10% of total Rev
Bunuel
eteum
No. Check the question stem: it asks about the final year of Formula A’s exclusivity period, which is Year 6.
So “total R&D expenditures” means the company’s total R&D spending in Year 6, not the sum across all six years. In Year 6, R&D was 240 and total revenue was 2,500, so it was less than 10%.
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