An automobile dealership’s two car lots have produced remarkably consi

Question

An automobile dealership’s two car lots have produced remarkably consistent sales figures over the last four years: in each of those years, the new car lot has contributed 25 percent of dollar sales and 50 percent of profits, and the used car lot has accounted for the balance.

Which of the following regarding the past four years is most strongly supported by the statements above?

(A) The used car lot produced lower profits per dollar of sales than the new car lot produced.
(B) There is greater competition in the new car market than there is in the used car market.
(C) The total profits for the dealership have remained constant for the past four years.
(D) There is a greater selection of used cars than there is of new cars.
(E) Luxury automobiles accounted for a higher percentage of new car sales than of used car sales.

Source : PowerScore

14101992 · Answer

An automobile dealership’s two car lots have produced remarkably consistent sales figures over the last four years: in each of those years, the new car lot has contributed 25 percent of dollar sales and 50 percent of profits, and the used car lot has accounted for the balance.

Which of the following regarding the past four years is most strongly supported by the statements above?

(A) The used car lot produced lower profits per dollar of sales than the new car lot produced.
(B) There is greater competition in the new car market than there is in the used car market.
(C) The total profits for the dealership have remained constant for the past four years.
(D) There is a greater selection of used cars than there is of new cars.
(E) Luxury automobiles accounted for a higher percentage of new car sales than of used car sales.

Simple CR question. B,D and E are out of scope.

C talks about total profit amount, which is not given in the question. Question only tells us about the percentage and not the actual value.

Hence, A is the best choice.

eddy8700 · Answer

The used car lot produced lower profits per dollar of sales than the new car lot produced.

Answer is A

New car
25 percent of dollar sales and 50 percent of profits

Used cars
75 percent of dollar sales and 50 percent of profits

hence used car produced lower profits per dollar sales

Sajjad1994 · Answer

Source :  PowerScore

Difficulty Level:   600

Official Explanation

Note that this stimulus is only about percentages of dollar sales and profits for both lots, and never references numbers or “amount” of sales/profit. Be wary of answer choices that make factual claims about numbers, as they likely go beyond the information provided.

Answer choice (A):     This is the correct answer  . As mentioned above, for every dollar in sales, the used car lot was much less profitable than was the new car lot.

Answer choice (B):   This goes beyond the facts in the stimulus, as the amount of competition between new and used car markets is never mentioned.

Answer choice (C):   This stimulus only tells us that the sales figure percentages have stayed consistent over the past four years. That does not mean that the numerical amount of either total sales or total profit has stayed constant. Again, be wary of answer choices that attempt to derive numerical truths from percentage information, or vice versa.

Answer choice (D):   This answer choice, like (B), goes beyond the scope of the stimulus and introduces information that cannot be know from the facts provided. There is never any mention of the amount of selection in either the used or new car markets.

Answer choice (E):   There is never any reference to “luxury automobiles” in the stimulus, nor to what percentage they might have accounted for in either lot’s sales, so this answer is incorrect.

Hope it help

VerbalBot · Answer

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An automobile dealership’s two car lots have produced remarkably consi

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An automobile dealership’s two car lots have produced remarkably consi

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