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ajaygaur319
Joined: 05 May 2019
Last visit: 01 Jan 2021
Posts: 125
Given Kudos: 143
Location: India
Schools: NYU Tech MBA "21
04 May 2020, 20:23
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
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Question Stats:
68% (01:31) correct
32%
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wrong
based on 1002
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Apple’s total sales of iPad has steadily declined in the last 3 quarters. At the same time, the overall profit contributed by sales of iPad over the last three quarters has not changed.
What can be inferred from the passage:
(A) iPad’s revenue as a proportion of Apple’s overall sales has declined over the last three quarters.
(B) iPad’s profit as a percentage of Apple’s operating profit has declined over the last three quarters.
(C) Apple did not sell as many units of iPad in the last quarter as it did three quarters back.
(D) The profitability of iPad unit has been improving over the last three quarters.
(E) Apple’s average selling price of an iPad in the last quarter was lower than what it was the quarter before.
What can be inferred from the passage:
(A) iPad’s revenue as a proportion of Apple’s overall sales has declined over the last three quarters.
(B) iPad’s profit as a percentage of Apple’s operating profit has declined over the last three quarters.
(C) Apple did not sell as many units of iPad in the last quarter as it did three quarters back.
(D) The profitability of iPad unit has been improving over the last three quarters.
(E) Apple’s average selling price of an iPad in the last quarter was lower than what it was the quarter before.
04 May 2020, 21:34
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ajaygaur319
So decline in sales but profit has increased...
say sales in last 3 quarters are 400, 300, 200 and profit is 20, 30 and 50 respectively...
(A) iPad’s revenue as a proportion of Apple’s overall sales has declined over the last three quarters.
We do not know anything about Apple's overall sales..
(B) iPad’s profit as a percentage of Apple’s operating profit has declined over the last three quarters.
Again, we do not know anything about Apple's operating profit..
(C) Apple did not sell as many units of iPad in the last quarter as it did three quarters back.
A bit confusing. If sales means the number of units, then it is correct, and if sales meant amount of money or revenue, then we cannot say anything.
All in all a poorly worded choice
(D) The profitability of iPad unit has been improving over the last three quarters.
Yes, this can be inferred as profitability per unit as per the numbers taken above will be.. \(\frac{20}{400}<\frac{30}{300}<\frac{50}{200}\)
(E) Apple’s average selling price of an iPad in the last quarter was lower than what it was the quarter before.
We know about sales in unit but not the price, maybe the price per unit has been increasing
D
05 May 2020, 01:13
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ajaygaur319
Given: Apple’s total sales of iPad has steadily declined in the last 3 quarters. At the same time, the overall profit contributed by sales of iPad over the last three quarters has not changed.
Asked: What can be inferred from the passage:
Overalll Profit = Total units sold * Profitability/unit
Overall Profit unchanged ; Total units sold declined -> Profitability per unit increased.
(A) iPad’s revenue as a proportion of Apple’s overall sales has declined over the last three quarters.
(B) iPad’s profit as a percentage of Apple’s operating profit has declined over the last three quarters.
(C) Apple did not sell as many units of iPad in the last quarter as it did three quarters back.
(D) The profitability of iPad unit has been improving over the last three quarters.
(E) Apple’s average selling price of an iPad in the last quarter was lower than what it was the quarter before.
IMO D
