Test: Multi Source Reasoning- 1 - GMAT MCQ

To find the highest profit for Alpha Corp, calculate the profit for each year:
Profit = Revenue × Profit Margin (%)
2018:
Profit = 200 million × 10% = 20 million
2019:
Profit = 220 million × 12% = 26.4 million
2020:
Profit = 240 million × 14% = 33.6 million
2021:
Profit = 260 million × 15% = 39 million
The highest profit was in 2021 with 39 million.

Calculate the percentage increase for each company:
Percentage Increase = [(Revenue in 2021 - Revenue in 2018) / Revenue in 2018] × 100%
Alpha Corp:
[(260 - 200) / 200] × 100% = 30%
Beta Inc:
[(180 - 150) / 150] × 100% = 20%
Gamma Ltd:
[(140 - 100) / 100] × 100% = 40%
Epsilon LLC:
[(210 - 180) / 180] × 100% ≈ 16.67%
Gamma Ltd has the largest percentage increase of 40%.

Calculate the absolute increase in market share:
Absolute Increase = Market Share in 2021 - Market Share in 2018
Alpha Corp:
18% - 15% = 3 percentage points
Beta Inc:
13% - 10% = 3 percentage points
Gamma Ltd:
12% - 8% = 4 percentage points
Epsilon LLC:
15% - 12% = 3 percentage points
Gamma Ltd had the largest increase of 4 percentage points.

Calculate the profit for each company in 2020:

• Alpha Corp: 240 million × 14% = 33.6 million
• Beta Inc: 170 million × 11% = 18.7 million
• Delta Co: 230 million × 13% = 29.9 million
• Epsilon LLC: 200 million × 11% = 22 million

Alpha Corp had the highest profit with 33.6 million.

Review the revenue over the years:
Delta Co: 250 → 240 → 230 → 220 million (declining each year)
Delta Co showed a continuous decline in revenue.