Performance of a blue-chip company over 6 years has been represented

Question

Source: e-GMAT  
Performance of a blue-chip company over 6 years has been represented in the chart below. Each circle indicates ratio of Revenue to Profit (value mentioned in the circle). The horizontal axis shows profits.
  https://gmatclub.com/forum/download/file.php?mode=view&id=65972  
3. $  GRAPH_1_PLACEHOLDER  M was the least expense incurred in the 6 year period.

4. Please choose this drop-down as a Graphs question needs to have 2  GRAPH_2_PLACEHOLDER .

The First two questions based on this stem can be found here.

riuu · Accepted Answer

Revenue/Profit = Ratios given
Revenue - Expense = Profit

The least is 1.05 so R/P = 1.05; 
Profit at this level is ~1600; 
R = 1.05 x 1600 = 1680;
1680 - E = 1600, which makes 80 our expense

Ria

Shwetabh54 · Answer

Let, Revenue = R, Profit = P and Expense (Cost) = C, Number in the circle = C

Given :-

R/P = C
=> R = PC ..... (1)

We know , Cost = Revenue - Profit 
=> C = R - P
=> C = PC - P (Using eqn 1)
=> C = P(C-1)

We have to minimize the cost, hence we have to look for minimum P and minimum C-1

Minimum P should be on the left side and minimum C-1 should be the least size circle.

Green circle is best for both the condition. C = ~1600 * (1.05-1) = 80

AamodHavaldar · Answer

Revenue : profit ratio was not clearly defined in the graph .
Will this be same for the exam as well ?

AamodHavaldar · Answer

Revenue : profit ratio was not clearly defined in the graph .
Will this be same for the exam as well ?

Edskore · Answer

This is a fair worry, and I remember feeling the same way the first time I hit a graph question where the label felt vague. On the actual exam, GMAT Focus DI graphs are self-contained, any ratio, unit, or definition you need is labeled directly on the visual, usually right in the title or a small key near the axis. If something like this ratio circle setup feels ambiguous here, it's usually because a third-party question (this one's from e-GMAT) got reformatted for the forum and lost a bit of the visual context that would've been obvious in the original image. My habit during prep was to spend the first 10-15 seconds of any graph question scanning specifically for a legend or definition before touching the actual data, it saves you from assuming units that aren't there. Also worth remembering the real DI tool lets you interact with the graph, so "unclear" labels are rarer than they look in practice sets.

AamodHavaldar · Answer

Thank you for clarifying that.

Performance of a blue-chip company over 6 years has been represented

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