📊 GMAT Exam Prep

A company's market share in two countries, Country A and Country B, changed from Year 1 to Year 2. In Year 1, Country A accounted for 60% of the company's total sales and Country B for 40%. In Year 2, Country A accounted for 50% and Country B for 50%. If the company's total sales volume *increased* by 20% from Year 1 to Year 2, which country experienced the largest absolute increase in the company's sales volume?

A Country A
B Country B
C Both experienced the same absolute increase.
D Cannot be determined without knowing the initial total sales volume.

✓ Correct Answer: Option B

Let initial total sales be S. Year 1: Country A = 0.60S, Country B = 0.40S. Year 2 total sales = 1.20S. Year 2: Country A = 0.50 * 1.20S = 0.60S, Country B = 0.50 * 1.20S = 0.60S. Country A's sales were 0.60S then 0.60S (no change). Country B's sales were 0.40S then 0.60S (increase of 0.20S). Country B had the largest absolute increase.

💡 Why is B) the correct answer?

The correct answer to the question "A company's market share in two countries, Country A and Country B, changed from Year 1 to Year 2. In Year 1, Country A accounted for 60% of the company's total sales and Country B for 40%. In Year 2, Country A accounted for 50% and Country B for 50%. If the company's total sales volume *increased* by 20% from Year 1 to Year 2, which country experienced the largest absolute increase in the company's sales volume?" is Option B: Country B.

The other options — A) Country A, C) Both experienced the same absolute increase., D) Cannot be determined without knowing the initial total sales volume. — are incorrect for this GMAT Exam Prep question. As explained above: Let initial total sales be S. Year 1: Country A = 0.60S, Country B = 0.40S. Year 2 total sales = 1.20S. Year 2: Country A = 0.50 * 1.20S = 0.60S, Country B = 0.50 * 1.20S = 0.60S. Country A's sales w…

📚 About This GMAT Exam Prep Practice Question

This 3-level GMAT Exam Prep question from the Data Insights topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

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