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.
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