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# XYZ Corporation has two divisions, both of which performed consistentl

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VP
Joined: 12 Dec 2016
Posts: 1493
Location: United States
GMAT 1: 700 Q49 V33
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XYZ Corporation has two divisions, both of which performed consistentl  [#permalink]

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Updated on: 15 Dec 2017, 19:53
2
00:00

Difficulty:

15% (low)

Question Stats:

79% (01:28) correct 21% (01:42) wrong based on 274 sessions

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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.

There’s a pattern here: if it’s not mentioned, an inference can’t be drawn about it.
C is the correct choice; Interment Services has a profit to transactions ratio of 50%:30%, or 5:3, while Toxic Household Products has a ratio of 50%:70%, or 5:7.

Originally posted by chesstitans on 15 Dec 2017, 11:31.
Last edited by Vyshak on 15 Dec 2017, 19:53, edited 1 time in total.
Intern
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Location: India
Concentration: General Management, Finance
GPA: 4
WE: Management Consulting (Human Resources)
Re: XYZ Corporation has two divisions, both of which performed consistentl  [#permalink]

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24 Dec 2017, 20:40
2
Lets say,
Total Units both the divisions combine is - 300
Total amount earned by both the divisions combined - 300*4\$ per unit - 1200

Division 1 accounted for 30 percent of the transactions - 90
accounted for 50 percent profit - 600 from 90 units

Division 2 accounted for 70 percent of the transactions - 210
Rest 50 percent profit - 600 from 210 units

Clearly less profit from division 2.

Therefore Option - C

Intern
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Posts: 16
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Concentration: General Management, Finance
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Re: XYZ Corporation has two divisions, both of which performed consistentl  [#permalink]

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24 Dec 2017, 20:41
Lets say,
Total Units both the divisions combine is - 300
Total amount earned by both the divisions combined - 300*4\$ per unit - 1200

Division 1 accounted for 30 percent of the transactions - 90
accounted for 50 percent profit - 600 from 90 units

Division 2 accounted for 70 percent of the transactions - 210
Rest 50 percent profit - 600 from 210 units

Clearly less profit from division 2.

Therefore Option - C

Intern
Joined: 20 Feb 2018
Posts: 2
Re: XYZ Corporation has two divisions, both of which performed consistentl  [#permalink]

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20 Jun 2018, 15:00
I chose C but can someone please mention why A and D should be ruled out? To me they seem to use the same type of language as in the stimulus.
Intern
Joined: 19 Dec 2018
Posts: 46
Re: XYZ Corporation has two divisions, both of which performed consistentl  [#permalink]

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19 Dec 2018, 04:22
Interment Services has a profit to transactions ratio of 50%:30%, or 5:3, while Toxic Household Products has a ratio of 50%:70%, or 5:7. Therefore, the Toxic Household Products Division is doing more than twice as many transactions as the Interment Services Division, but yielding the same profits. Hence, C is the answer.
Manager
Joined: 10 Mar 2016
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Concentration: Finance, Real Estate
GMAT 1: 550 Q44 V23
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Re: XYZ Corporation has two divisions, both of which performed consistentl  [#permalink]

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03 Jan 2019, 15:44
Let's consider transactions of Interment Services Division be T1 and transactions of Toxic Household Products Division be T2. Let's consider Profit to be P for both the division as both are equal.

As per option C, P/T1 is greater than P/T2
Hence it can be concluded.

Rest can't be concluded on the basis of info given.
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Re: XYZ Corporation has two divisions, both of which performed consistentl   [#permalink] 03 Jan 2019, 15:44
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