📊 GMAT Exam Prep

A company's Q1 financial report shows the following for its three divisions: Division A had $500M revenue and $100M profit. Division B had $750M revenue and $120M profit. Division C had $400M revenue and $84M profit. Which division had the highest profit margin (Profit/Revenue)?

A Division A
B Division B
C Division C
D Divisions A and C had the same highest margin.

✓ Correct Answer: Option C

Calculate profit margin for each: A = $100M/$500M = 20%; B = $120M/$750M = 16%; C = $84M/$400M = 21%. Division C has the highest profit margin.

💡 Why is C) the correct answer?

The correct answer to the question "A company's Q1 financial report shows the following for its three divisions: Division A had $500M revenue and $100M profit. Division B had $750M revenue and $120M profit. Division C had $400M revenue and $84M profit. Which division had the highest profit margin (Profit/Revenue)?" is Option C: Division C.

The other options — A) Division A, B) Division B, D) Divisions A and C had the same highest margin. — are incorrect for this GMAT Exam Prep question. As explained above: Calculate profit margin for each: A = $100M/$500M = 20%; B = $120M/$750M = 16%; C = $84M/$400M = 21%. Division C has the highest profit margin.

📚 About This GMAT Exam Prep Practice Question

This 2-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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