📊 GMAT Exam Prep

A company's Q3 performance is reviewed through two reports. Report 1 (Marketing) indicates a 20% increase in lead generation compared to Q2. Report 2 (Sales) shows that the conversion rate from leads to sales remained flat at 5%, and total revenue decreased by 10% in Q3. Which of the following statements best reconciles these reports?

A The average value of each sale decreased significantly in Q3.
B The sales team's closing efficiency improved in Q3.
C The marketing budget was considerably reduced in Q3.
D The company faced increased competition, impacting lead quality.

✓ Correct Answer: Option A

If lead generation increased and the conversion rate remained flat, the volume of sales should have risen. For total revenue to decrease despite higher sales volume, the average revenue per sale must have dropped significantly, indicating a decrease in average deal size.

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