📊 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.

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