GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 18 Nov 2018, 23:49

### 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

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

## Events & Promotions

###### Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### How to QUICKLY Solve GMAT Questions - GMAT Club Chat

November 20, 2018

November 20, 2018

09:00 AM PST

10:00 AM PST

The reward for signing up with the registration form and attending the chat is: 6 free examPAL quizzes to practice your new skills after the chat.
• ### The winning strategy for 700+ on the GMAT

November 20, 2018

November 20, 2018

06:00 PM EST

07:00 PM EST

What people who reach the high 700's do differently? We're going to share insights, tips and strategies from data we collected on over 50,000 students who used examPAL.

# The two divisions of a high-tech company have performed

Author Message
TAGS:

### Hide Tags

Manager
Joined: 22 Jan 2012
Posts: 81
Location: India
Concentration: General Management, Technology
GPA: 3.3
WE: Engineering (Consulting)
The two divisions of a high-tech company have performed  [#permalink]

### Show Tags

14 Mar 2012, 00:44
2
1
00:00

Difficulty:

(N/A)

Question Stats:

92% (01:06) correct 8% (01:29) wrong based on 175 sessions

### HideShow timer Statistics

The two divisions of a high-tech company have performed quite consistently over the past five years. In each year, the telecommunications equipment division accounted for 35 percent of profits and 15 percent of revenues, and the high-speed internet division made up the balance. Which of the following can properly be inferred regarding the past five years from the information above?

A. The telecommunications equipment division has made higher profits per dollar than the high-speed internet division.
B. Sales for both divisions have remained flat over the five years.
C. The high-speed-internet market involved tougher competition than the telecommunications equipment market during the past five years.
D. Management devoted a greater number of company resources to the telecommunications equipment division than to the high-speed internet division over the past five years.
E. More profitable products made up a higher percentage of the products offered by the telecommunications division.
_________________

Press +1 Kudos rather than saying thanks

Ill be posting good questions as many as I can...

Towards Success

Senior Manager
Joined: 12 Mar 2012
Posts: 253
Concentration: Operations, Strategy

### Show Tags

14 Mar 2012, 01:18
A. The telecommunications equipment division has made higher profits per dollar than the high-speed internet division.

as per question:
T= 0.35 P; 0.15 R
I= 0.65 P ; 0.85 R

hence A can be deduced properly.

imo A
_________________

Practice Practice and practice...!!

If there's a loophole in my analysis--> suggest measures to make it airtight.

Manager
Status: May The Force Be With Me (D-DAY 15 May 2012)
Joined: 06 Jan 2012
Posts: 221
Location: India
Concentration: General Management, Entrepreneurship

### Show Tags

14 Mar 2012, 03:59
Hi,

Ya +1 A

There is a similar question in OG 12
_________________

Giving +1 kudos is a better way of saying 'Thank You'.

Manager
Joined: 22 Jan 2012
Posts: 81
Location: India
Concentration: General Management, Technology
GPA: 3.3
WE: Engineering (Consulting)

### Show Tags

14 Mar 2012, 04:27
Is there any reason why C couldn't be the right answer ??
_________________

Press +1 Kudos rather than saying thanks

Ill be posting good questions as many as I can...

Towards Success

Senior Manager
Joined: 12 Mar 2012
Posts: 253
Concentration: Operations, Strategy

### Show Tags

14 Mar 2012, 04:54
1
iwillcrackgmat wrote:
Is there any reason why C couldn't be the right answer ??

we have no other information like overall market situation or anything that can reflect the status of the two products separately in the market. we cant predict anything about the market by the information present in the argument. Argument just throws the info that can help us conclude regarding the products in the same company.
_________________

Practice Practice and practice...!!

If there's a loophole in my analysis--> suggest measures to make it airtight.

Manager
Joined: 10 Nov 2010
Posts: 190
Location: India
Concentration: Strategy, Operations
GMAT 1: 520 Q42 V19
GMAT 2: 540 Q44 V21
WE: Information Technology (Computer Software)

### Show Tags

03 Apr 2012, 23:07
whats the OA guys.

And y C is wrong
_________________

The proof of understanding is the ability to explain it.

Manager
Status: I will not stop until i realise my goal which is my dream too
Joined: 25 Feb 2010
Posts: 194
Schools: Johnson '15

### Show Tags

04 Apr 2012, 06:36
i would go with A too....for the same reason as mentioned by others.... Can the guy who posted question can post the correct answer too?
_________________

Regards,
Harsha

Note: Give me kudos if my approach is right , else help me understand where i am missing.. I want to bell the GMAT Cat

Satyameva Jayate - Truth alone triumphs

Manager
Joined: 10 Nov 2010
Posts: 190
Location: India
Concentration: Strategy, Operations
GMAT 1: 520 Q42 V19
GMAT 2: 540 Q44 V21
WE: Information Technology (Computer Software)

### Show Tags

04 Apr 2012, 21:32
B,C & D is new information ---not explicitly mentioned in the passage

B/w A & E

I think A s correct

E---cnt be said about number of products
_________________

The proof of understanding is the ability to explain it.

Intern
Joined: 19 Mar 2012
Posts: 3

### Show Tags

10 Apr 2012, 01:12
I think C is answer. Pls explain why it is A?
Manager
Joined: 22 Jan 2012
Posts: 81
Location: India
Concentration: General Management, Technology
GPA: 3.3
WE: Engineering (Consulting)

### Show Tags

14 Apr 2012, 17:55
OA is A

_________________

Press +1 Kudos rather than saying thanks

Ill be posting good questions as many as I can...

Towards Success

Manager
Status: Preparing Apps
Joined: 04 Mar 2009
Posts: 88
Concentration: Marketing, Strategy
GMAT 1: 650 Q48 V31
GMAT 2: 710 Q49 V38
WE: Information Technology (Consulting)

### Show Tags

22 Apr 2012, 10:44
1
The two divisions of a high-tech company have performed quite consistently over the past five years. In each year, the telecommunications equipment division accounted for 35 percent of profits and 15 percent of revenues, and the high-speed internet division made up the balance. Which of the following can properly be inferred regarding the past five years from the information above?

Fact 1 - the data provided is for 5 years
Fact 2 - Contribution by each department towards profits & revenue.
No where in the stimulus the explanation for the Contribution by each department towards profits & revenue is provided

A. The telecommunications equipment division has made higher profits per dollar than the high-speed internet division.
-- Looks good. Discusses profits. I'd keep it as a contender.
B. Sales for both divisions have remained flat over the five years.
-- Sales of either department are not discussed in the stimulus. So, cannot infer this.
C. The high-speed-internet market involved tougher competition than the telecommunications equipment market during the past five years.
-- Explanation for why one department fared better than the other. Cannot infer this too.
D. Management devoted a greater number of company resources to the telecommunications equipment division than to the high-speed internet division over the past five years.
-- Discusses the devotion of the management, never discusses in the stimulus. So, cannot infer this too.
E. More profitable products made up a higher percentage of the products offered by the telecommunications division.
-- Explains why one department made more profits than the other. So, this cannot be inferred.

This leaves us with only option A. And if you look closer at A it makes more sense when the information in the stimulus is broken-up like:
telecommunications div - for every 15% revenue --> it leads to 35% profits
high-speed internet div - for every 85% revenue --> it leads to 65% profits
Manager
Joined: 22 Jan 2012
Posts: 81
Location: India
Concentration: General Management, Technology
GPA: 3.3
WE: Engineering (Consulting)
Re: The two divisions of a high-tech company have performed  [#permalink]

### Show Tags

15 Aug 2013, 04:35
explanation is already provided in few replies of this post.
_________________

Press +1 Kudos rather than saying thanks

Ill be posting good questions as many as I can...

Towards Success

Non-Human User
Joined: 01 Oct 2013
Posts: 3392
Re: The two divisions of a high-tech company have performed  [#permalink]

### Show Tags

21 Nov 2017, 05:04
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: The two divisions of a high-tech company have performed &nbs [#permalink] 21 Nov 2017, 05:04
Display posts from previous: Sort by