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.

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

Kudos for Reply!!!

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.