XYZ Corporation has two divisions, both of which performed consistentl

Question

XYZ Corporation has two divisions, both of which performed consistently over the last five years. The Interment Services Division accounted for approximately 30% of the corporation’s transactions and 50% of the corporation’s profits; the Toxic Household Products Division accounts for the balance.

The statements above support which of the following inferences about XYZ Corporation over the last five years?

A. Measured in dollars, the total profits for XYZ Corporation have remained stable over the last five years.

B. Interment Services is an increasingly competitive field, while Toxic Household Products are a largely untapped market.

C. The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.

D. XYZ Corporation’s Toxic Household Products line has remained consistent over the past five years.

E. Most families will, over a given five-year period, spend more money on Interment Services than on Toxic Household Products.

karnavora1 · Accepted Answer

XYZ Corporation has two divisions, both of which performed consistently over the last five years. The Interment Services Division accounted for approximately 30% of the corporation’s transactions and 50% of the corporation’s profits; the Toxic Household Products Division accounts for the balance.

The statements above support which of the following inferences about XYZ Corporation over the last five years?

A. Measured in dollars, the total profits for XYZ Corporation have remained stable over the last five years.
   Incorrect - Both the divisions have performed consistently over the last 5 years, but we don't know if they remained stable or grew and we 
 don't know anything about currecy.

B. Interment Services is an increasingly competitive field, while Toxic Household Products are a largely untapped market.
   Incorrect - Wrong assumption made

C. The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.
   Correct - If 1000 transactions are made between both and 20000 in profit between both then the profit/transaction for Toxic household products is 10000/700 while Internet Division is 10000/300

D. XYZ Corporation’s Toxic Household Products line has remained consistent over the past five years.
   Incorrect - Refer to point A

E. Most families will, over a given five-year period, spend more money on Interment Services than on Toxic Household Products.
   Incorrect - Wrong Assumption

ElninoEffect · Answer

A. Measured in dollars, the total profits for XYZ Corporation have remained stable over the last five years.
 We cannot deduce that as we are given the stats in %. Hence the number can be higher also.

B. Interment Services is an increasingly competitive field, while Toxic Household Products are a largely untapped market.
 We don't know that.

C. The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.
 Toxic Household Products Division : 70% of the transaction and accounts for 50% of the profit.
Interment Services Division: 30% of the transaction and accounts for 50% of the profit.
We can deduce the same.

D. XYZ Corporation’s Toxic Household Products line has remained consistent over the past five years.
 We cannot deduce that.

E. Most families will, over a given five-year period, spend more money on Interment Services than on Toxic Household Products.
 Future predictions cannot be made.

yashikaaggarwal · Answer

A. Measured in dollars, the total profits for XYZ Corporation have remained stable over the last five years. (we just know that the two-division is performing consistently over five years. What if they are performing 20% better every year, consistently? The profit will be increasing every year that way) (can't assume for sure)

B. Interment Services is an increasingly competitive field, while Toxic Household Products are a largely untapped market. (We can not predict on a general basis with just one company's data) (irrelevant)

C. The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division. (This can be used as a supporting factor) if interment division with 30% resources is generating 50% profit, then toxic is definitely producing less profit within given resources) (Keep this)

D. XYZ Corporation’s Toxic Household Products line has remained consistent over the past five years. (Product line is nowhere mentioned) (out of scope)

E. Most families will, over a given five-year period, spend more money on Interment Services than on Toxic Household Products. (No spending and expenditure are taken into account) (out of context)

Answer is C

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mdsaddamforgmat · Answer

IMO C
The argument says :- 
The Interment Services Division -> Transaction is 30% & Profit is 50%
And argument implies 
the Toxic Household Products Division -> Transaction is 70% & Profit is 50%

from above we can infer that profit per transaction is Higher in “The Interment Services Division” compared to that of “the Toxic Household Products Division”.

XYZ Corporation has two divisions, both of which performed consistentl

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XYZ Corporation has two divisions, both of which performed consistentl

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