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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.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
XYZ Corporation has two divisions, both of which performed consistentl...
A. Measured in dollars, the total profits for XYZ Corporation have remained stable over the last five years.
This option cannot be inferred from the given statements. The statements provide information about the proportion of transactions and profits generated by each division, but they do not provide any information about the stability or changes in total profits over the last five years.
B. Interment Services is an increasingly competitive field, while Toxic Household Products are a largely untapped market.
This option cannot be inferred from the given statements. The statements provide information about the division's contributions to the corporation's transactions and profits, but they do not provide any information about the competitiveness of the Interment Services field or the market potential of Toxic Household Products.
C. The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.
This option can be inferred from the given statements. The statements indicate that the Interment Services Division accounts for 30% of the transactions but 50% of the profits. This suggests that, on average, the Interment Services Division generates higher profits per transaction compared to the Toxic Household Products Division.
D. XYZ Corporation’s Toxic Household Products line has remained consistent over the past five years.
This option cannot be inferred from the given statements. The statements provide information about the contributions of each division to the corporation's transactions and profits but do not provide any information about the consistency or changes in the Toxic Household Products line.
E. Most families will, over a given five-year period, spend more money on Interment Services than on Toxic Household Products.
This option cannot be inferred from the given statements. The statements provide information about the proportion of transactions and profits generated by each division but do not provide any information about the spending patterns of families or the relative amounts spent on Interment Services and Toxic Household Products.
Therefore, the only valid inference that can be made from the given statements is option C: The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.
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Most Upvoted Answer
XYZ Corporation has two divisions, both of which performed consistentl...
A. Measured in dollars, the total profits for XYZ Corporation have remained stable over the last five years.
This option cannot be inferred from the given statements. The statements provide information about the proportion of transactions and profits generated by each division, but they do not provide any information about the stability or changes in total profits over the last five years.
B. Interment Services is an increasingly competitive field, while Toxic Household Products are a largely untapped market.
This option cannot be inferred from the given statements. The statements provide information about the division's contributions to the corporation's transactions and profits, but they do not provide any information about the competitiveness of the Interment Services field or the market potential of Toxic Household Products.
C. The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.
This option can be inferred from the given statements. The statements indicate that the Interment Services Division accounts for 30% of the transactions but 50% of the profits. This suggests that, on average, the Interment Services Division generates higher profits per transaction compared to the Toxic Household Products Division.
D. XYZ Corporation’s Toxic Household Products line has remained consistent over the past five years.
This option cannot be inferred from the given statements. The statements provide information about the contributions of each division to the corporation's transactions and profits but do not provide any information about the consistency or changes in the Toxic Household Products line.
E. Most families will, over a given five-year period, spend more money on Interment Services than on Toxic Household Products.
This option cannot be inferred from the given statements. The statements provide information about the proportion of transactions and profits generated by each division but do not provide any information about the spending patterns of families or the relative amounts spent on Interment Services and Toxic Household Products.
Therefore, the only valid inference that can be made from the given statements is option C: The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.
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Community Answer
XYZ Corporation has two divisions, both of which performed consistentl...
Understanding the Inference
The statements regarding XYZ Corporation provide insight into the financial performance of its two divisions over the past five years. The key points to analyze include the proportion of transactions and profits attributed to each division.
Key Points of Analysis
- Interment Services Division:
- Accounts for 30% of transactions
- Generates 50% of profits
- Toxic Household Products Division:
- Accounts for the remaining 70% of transactions
- Generates 50% of profits
Inference Explanation
Given these statistics, we can infer the following:
- The Interment Services Division is significantly more profitable per transaction than the Toxic Household Products Division. Since it generates 50% of the profits from only 30% of the transactions, it suggests that each transaction in this division contributes more to overall profit.
- Conversely, the Toxic Household Products Division, while accounting for a higher percentage of transactions (70%), only matches the profit contribution of the Interment Services Division. This indicates that each transaction in this division yields less profit on average.
Conclusion
Thus, the correct inference is that:
- The Toxic Household Products Division yields a lower average profit per transaction than does the Interment Services Division.
This aligns with option C, as it directly reflects the discrepancy in profit generation relative to the volume of transactions in each division.
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Read the passage and answer the question given below.In the year 2011 real estate agents and brokers received more than $100 billion in commissions on sales of residential and commercial property. The majority of that sum came in the form of the standard 6 percent charged on the sale of residential homes: 3 percent to the agent representing the buyer, and 3 percent to the agent representing the seller. This 6 percent arrangement has been the prevailing form of compensation in agented real estate transactions for decades. There is evidence, however, that the standard 6 percent commission may soon become a thing of the past.Real estate agents provide a number of services to their clients, but the most indispensable services they provide are those related to the control of information. Most clients can handle negotiations themselves, and advice on inexpensive measures to increase the value of a home—e.g. a fresh coat of paint, reduce clutter—are well known, but people not in the real estate business have generally not had access to sufficient information to determine the optimum price for their homes, nor have they been able to access the information networks used by brokers to advertise the availability of a home to the widest audiences. The most significant of these is the MLS network; only a licensed agent can list a home for sale on the MLS network.The transformation of information transfer through the Internet, however, is loosening the control that agents have over real estate information. Consumers can quickly find on the Internet, for example, the offering price and actual sales prices of most homes in their region for the last several years, and in most regions they can receive free access to essentially the same real estate listings that agents use when helping clients find homes. The ease of listing homes on the Internet, moreover, is making the process of selling a home far easier than it was in the past. With a digital camera and access to the MLS listing site, a seller’s agent can have a home listed to a wide audience in under an hour’s time.The consequences of the simplification of real estate information transfer are that a large number of consumers are questioning whether agents truly deserve a 6 percent commission. Increasingly, agents are willing to accept a commission of 5 or 4.5 percent, and some are willing to buy or sell homes for a flat fee. A number of Internet services have sprung up that allow homeowners to list their homes on MLS for less than $1,000, a fraction of the price they would pay for a commission to an agent.Q.If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?

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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.Correct answer is option 'C'. Can you explain this answer?
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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.Correct answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about 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.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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.Correct answer is option 'C'. Can you explain this answer?.
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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.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. 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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.Correct answer is option 'C'. 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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.Correct answer is option 'C'. 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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.Correct answer is option 'C'. 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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.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
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