Stalwarts Stores, Inc. runs a huge chain of large discount

Hello, monk123. The correct answer is rooted in the information provided in the last line of the passage.

Fact #1: Stalwarts contributes 30 percent of dollar sales for the parent company, Stalwarts Stores, Inc. (presumably over the last 5 years)

Fact #2: Stalwarts contributes 40 percent of profit for the parent company

Fact #3: Stal's Club contributes the rest

Conclusion: Stalwarts contributes 30 percent of dollar sales, so Stal's Club contributes the other 70 percent; Stalwarts contributes 40 percent of profit, so Stal's Club contributes the other 60 percent. The ratio of percent of dollar sales to percent of profit for each subsidiary is as follows:

Stalwarts: \(\frac{30}{40}\)

Stal's Club: \(\frac{70}{60}\)

The ratios show that Stal's Club may generate more dollar sales, but, relative to those sales, the profit generated is smaller than the same relationship for Stalwarts (where selling less leads to a greater share of total profit). Therefore, we can deduce that for every dollar of sale, Stal’s Club brings less profit then [sic] Stalwart does. Choice (D) is the answer.

As for the other answers, (A) produces an unsubstantiated claim. In fact, the same amount of profit and making consistent progress from the passage do not paint a consistent picture. Choice (B) has us compare the cost of products at the two stores, but all the passage provides is information about dollar sales. We cannot tell what items would cost at either store from this figure. Choice (C) falls into a similar camp as (A), noting a lack of change, but again, we cannot tell anything about the products being sold at either chain of stores. Finally, (E) requires speculation about the relative competition the two chains face when the passage says nothing about any other stores. In short, each answer except for (D) is a straight miss, and the more you have to fill in gaps around the information provided in the passage, the less likely you are to be on the right track.

I hope that helps. If you have further questions, feel free to ask. Good luck with your studies.

- Andrew