Corporation A consists of three distinct divisions: one focused on

Question

https://gmatclub.com/gmat-focus-tests/resources/import/img/I14-06.png

Corporation A consists of three distinct divisions: one focused on cosmetics, another on apparel, and the third on accessories. The line graph above illustrates the profit generated by these divisions over a five-year period, measured in thousands of dollars.

Select from each drop-down menu the option that creates the most accurate statement, given the information provided.

Based on the available information, the  GRAPH_1_PLACEHOLDER  Division in  GRAPH_2_PLACEHOLDER  had the largest share of total profit in any given year.

Bunuel · Accepted Answer

Official Solution:
   
We need to identify which division's profit accounted for the largest share of the total profit in a particular year.
 
• In 2014, the Apparel Division, with a profit of 40 thousand, accounted for more than 50% of the total profit of 75 thousand.

• In 2015, the Cosmetics Division, with a profit of 35 thousand, accounted for approximately 40% of the total profit of 90 thousand.

• In 2016, the Cosmetics Division, with a profit of 40 thousand, accounted for approximately 40% of the total profit of 105 thousand.

• In 2017, the Apparel Division, with a profit of 50 thousand, accounted for approximately 40% of the total profit of 130 thousand.

• In 2018, the Accessories Division, with a profit of 65 thousand, accounted for approximately 40% of the total profit of 165 thousand.
 
Therefore, the Apparel Division accounted for the largest share of the total profit in 2014.

Correct answer:

Dropdown 1:  "Apparel"

Dropdown 2:  "2014"

Ab1313 · Answer

We are calculating highest market share for a divisision in a particular year. While visually it might look higer numbers towards the right might be correct, but if you see the numbers in 2014 - 40/75 (over 50%) for apparel is the highest market share amongst all the other years mentioned

bumbleBee3445 · Answer

The question asked is which division had the largest share of total profit, i.e. we want the division which has higher profit percentage that year than others.

In the year  2014 , total profit is 74 k and the  apparel  is giving 40k, so the percentage is more here i.e 40/75*100. in comparison to other years and divisions.

Alternate way: the result will have a stretched graph for higher and lower profits for any year. so by observation, we can eliminate other years than 2014 as profits for 3 divisions are around similar levels.
Hence, answer is  apparel and 2014.

egmat · Answer

Great question! Let me walk you through how to approach this step by step.

The statement reads: 'The ___ Division in ___ had the largest share of total profit in any given year.'

The key phrase here is 'largest share of total profit.' This does NOT mean the highest raw profit — it means the highest percentage of that year's total profit. This is the most  common trap  in this type of question.

Here is the approach:

Step 1:  For each year ( 2014 – 2018 ), add up the profits of all  3  divisions (Cosmetics + Apparel + Accessories) to get the total profit for that year.

Step 2:  For each division in each year, calculate its share as a percentage:
 Share = (Division's Profit / Total Profit for that year) x 100

Step 3:  Compare all  15  combinations ( 3  divisions x  5  years) and find the single largest percentage.

When you do this for  2014 , the Apparel Division's profit was a very large portion of the total profit that year. This happens when one division dominates while the other two divisions contribute relatively little. Even if Apparel had higher raw profit in another year, what matters is how large its slice of the pie was compared to the other divisions in that same year.

For example, if in  2014  Apparel earned  $80K  while Cosmetics earned  $10K  and Accessories earned  $10K , Apparel's share would be  80 / 100  =  80% . But if in  2018  Apparel earned  $100K  while the others earned  $60K  each, Apparel's share would only be  100 / 220  = about  45% .

So the correct answer is Apparel for D1 and 2014 for D2 , because the Apparel Division in  2014  commanded the single highest percentage share of total profit across all year-division combinations.

Key takeaway:  'Largest share' means largest percentage of total — not the largest absolute number. Always divide by the total for that year before comparing.

Answer: Apparel, 2014

Corporation A consists of three distinct divisions: one focused on

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Graphs and Tables (G&T) Questions

Corporation A consists of three distinct divisions: one focused on

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards