Critical reasoning: An electronics company’s two departments showed consistent performance over the last two years. In each year the audiovisual department accounted for roughly 30% of the company’s sales and 70% of the company’s profits over the period, while the home appliance department accounted for the balance. Which of the following statements regarding the last two years can be inferred from the statement?

A The audiovisual department is growing faster than the home appliance department

B The home appliance department has realized lower profits per Taka of sales than has the audiovisual department

C Total sales (in Tk.) of the two departments have research and development efforts in the audiovisual department than in the home appliance department.

D To maximize the profitability, the company should focus its resources on the home appliance.

Solution

Correct Answer: Option B

Solution

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