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.
Nov 1912:30 PM EST
-01:30 PM EST
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 2001:30 PM EST
-02:30 PM IST
Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
Nov 2211:00 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- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2407:00 PM PST
-08:00 PM PST
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
Nov 2510:00 AM EST
-11:00 AM EST
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.
03 Nov 2025, 00:31
Kudos
Bookmarks
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
36% (02:02) correct
64%
(01:55)
wrong
based on 275
sessions
History
Date
Time
Result
Not Attempted Yet
The Tulips electronics manufacturer came out with a revamped version of a radio they had once produced. The older model had excellent sound quality. The new version had a more attractive design and was fitted with a display screen. The management department was extremely pleased with the record-high sales figures produced by the new radio although the finance department claimed that the profit earned by the old radio in the same amount of time was higher by two-thirds.
Which of the following inferences is best supported by the statement made above?
(A) The screen fitted to the new radios increased its production cost, resulting in a lower profit.
(B) Although the new model was cheaper to produce, its marketing proved to be very expensive.
(C) The revenues earned by the old model were two-thirds higher than those earned by the new model.
(D) Although it had excellent sound quality, the older model cost Tulips less.
(E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher.
Which of the following inferences is best supported by the statement made above?
(A) The screen fitted to the new radios increased its production cost, resulting in a lower profit.
(B) Although the new model was cheaper to produce, its marketing proved to be very expensive.
(C) The revenues earned by the old model were two-thirds higher than those earned by the new model.
(D) Although it had excellent sound quality, the older model cost Tulips less.
(E) Even though the sales figures of the new radio were extremely high, those enjoyed by the older model had been even higher.
03 Nov 2025, 07:42
Kudos
Bookmarks
I picked (A) here because a screen was mentioned in the question itself
03 Nov 2025, 09:57
Kudos
Bookmarks
I ended up with A and D - but in the end I decided to pick D!
We know that...
...the new radio has two new features.
...has "record-high" sales figures ("record-high" might imply that sales figures have never been this high)
...the old radio generated more PROFIT in the same amount of time (Revenue-Costs (old) > Revenue-Costs (new))
For the equation to hold, even if revenues would be same (revenue old shout be smaller than revenue new probably), then Costs (old) have to be smaller than costs (new)
Looking at the answer choices:
A) According to A the new screen led to higher costs -> This would make sense. But we can't really infer that the screen has to be the reason (it could also be another cost position)
D) "Old model cost less" -> this has to be an inference as discussed above (for the equation to hold, the costs (old) have to be smaller than costs (new))
As the inference of D is definitely stronger imo - I choose D
Bunuel What do you think of my reasoning?
We know that...
...the new radio has two new features.
...has "record-high" sales figures ("record-high" might imply that sales figures have never been this high)
...the old radio generated more PROFIT in the same amount of time (Revenue-Costs (old) > Revenue-Costs (new))
For the equation to hold, even if revenues would be same (revenue old shout be smaller than revenue new probably), then Costs (old) have to be smaller than costs (new)
Looking at the answer choices:
A) According to A the new screen led to higher costs -> This would make sense. But we can't really infer that the screen has to be the reason (it could also be another cost position)
D) "Old model cost less" -> this has to be an inference as discussed above (for the equation to hold, the costs (old) have to be smaller than costs (new))
As the inference of D is definitely stronger imo - I choose D
Bunuel What do you think of my reasoning?
