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Corporation X has three divisions (Divisions A, B, and C). For each quarter of the last fiscal year, the graph...

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Graph showing quarterly profit percentages for Corporation X's three divisions

Corporation X has three divisions (Divisions A, B, and C). For each quarter of the last fiscal year, the graph shows the percentage of the corporation's total net profit through the end of that quarter from the three divisions. In each of the quarters, each division had an increase in net profit compared to the prior quarter.

Based on the available information, it must be the case that, in theQuarter, Divisionnet profit more than doubled from the prior quarter.
Solution

Owning The Dataset

Table 1: Text Analysis

Text Component Literal Content Simple Interpretation
Entity Corporation X has three divisions (Divisions A, B, and C) The company operates via three divisions, labeled A, B, and C
Time Period For each quarter of the last fiscal year Data is collected quarterly for the most recent full fiscal year (Q1-Q4)
Data Type The graph shows the percentage of the corporation's total net profit through the end of that quarter from the three divisions For each quarter, the chart displays what percent of total net profit came from each division, cumulatively to that quarter
Growth Constraint In each of the quarters, each division had an increase in net profit compared to the prior quarter Every division's absolute profit grew in each quarter, with no declines

Table 2: Chart Analysis

Chart Component Details Interpretation
Chart Type Bar chart, 3 bars per quarter (A, B, C) Shows comparative performance by division and changes over quarters
X-axis Four quarters (First, Second, Third, Fourth) Time progression across the fiscal year
Y-axis Percentage of corporation's cumulative net profit, 0% to 80% Relative share by division (A, B, C) in each quarter
Q1 values A: 20%, B: 50%, C: 30% B is the largest contributor to cumulative profit in Q1
Q2 values A: 18%, B: 24%, C: 58% C becomes dominant; major shift from Q1
Q3 values A: 11%, B: 27%, C: 62% C increases further; A declines in share
Q4 values A: 14%, B: 28%, C: 58% Stable shares from Q3; C remains on top
Overall trend C's share rises sharply Q1→Q2; minor changes Q3-Q4; all divisions increase in absolute profit every quarter The rise in C's relative share indicates very strong growth in C compared to A and B, but all divisions grew absolutely

Key Insights

  1. Division C's percentage of total net profit nearly doubles between Q1 (30%) and Q2 (58%), reflecting extremely rapid profit growth by Division C relative to the others.
  2. Division B's contribution drops from 50% in Q1 to 24% in Q2, even though the net profit for B still increased, indicating C's growth greatly outpaced B.
  3. The critical constraint that each division's profit grew every quarter means that any decrease in percentage share is only due to other divisions growing even more quickly.
  4. The new division shares remain stable after Q2, with C consistently responsible for the largest portion of profits. The dataset reflects not only the relative performance but, given the constraint, that all three divisions were profitable and growing throughout the year.

Step-by-Step Solution

Question 1: Identifying the Quarter Where a Division's Net Profit More Than Doubled

Complete Statement:

Based on the available information, it must be the case that, in the [BLANK 1] Quarter, Division [BLANK 2] net profit more than doubled from the prior quarter.

Breaking Down the Statement
  • Statement Breakdown 1:
    • Key Phrase: Based on the available information
    • Meaning: We are to use only the data explicitly shown in the chart and the given constraints.
    • Relation to Chart: Refers to reading the profit percentage chart for all divisions and quarters.
    • Important Implications: We must not assume any unshown data; the answer must be clear from the chart and constraints.
  • Statement Breakdown 2:
    • Key Phrase: it must be the case that
    • Meaning: We're asked for something that is logically certain, not merely possible.
    • Relation to Chart: We are seeking a definite inference from the data, not just a possibility.
    • Important Implications: Only pick scenarios that are guaranteed to be true.

What is needed: In which quarter did a division see its net profit more than double over the previous quarter, based on profit share and the constraint of continuous growth?

Solution:
  • Condensed Solution Implementation:
    Examining changes between quarters, we look for a division whose share of company profits rises dramatically, suggesting its absolute profit grew by more than double, given that all other divisions also grew each quarter.
  • Necessary Data points:
    Between Q1 and Q2, Division C's profit share jumps from 30% to 58%. All other divisions' shares either decline or do not come close to doubling.
  • Calculations Estimations:
    The share for Division C increases by 28 percentage points, nearly doubling (a 93% relative increase). Since total company profit increases and other divisions also grew, C's absolute profit must have more than doubled.
  • Comparison to Answer Choices:
    Examining all quarter pairs, only between Q1 and Q2 does any division have such a dramatic jump. Thus, the correct quarter is the Second.
FINAL ANSWER Blank 1: Second

Question 2: Identifying the Division with More Than Double Net Profit

Complete Statement:

Based on the available information, it must be the case that, in the Second Quarter, Division [BLANK 2] net profit more than doubled from the prior quarter.

Breaking Down the Statement
  • Statement Breakdown 1:
    • Key Phrase: in the Second Quarter
    • Meaning: We focus on the period between the First and Second Quarter.
    • Relation to Chart: Means to compare data in Q1 and Q2.
  • Statement Breakdown 2:
    • Key Phrase: Division [BLANK 2] net profit more than doubled
    • Meaning: Identify the specific division with the qualifying dramatic increase.
    • Relation to Chart: Check each division's change in profit share from Q1 to Q2.

What is needed: Which division had net profit more than double after the First Quarter, using percent share increases and the growth constraint?

Solution:
  • Condensed Solution Implementation:
    Compare each division's profit share from Q1 to Q2. Only the division whose share nearly doubles, against a background where all shares must have grown, fulfills the requirement.
  • Necessary Data points:
    Division A: 20% to 18% (slight decrease). Division B: 50% to 24% (decrease). Division C: 30% to 58% (nearly doubling).
  • Calculations Estimations:
    C's share goes from 30% to 58%. This 93% jump, combined with required overall growth, signals more than doubling in C's absolute profit.
  • Comparison to Answer Choices:
    Division C is the only one with the necessary dramatic increase. Thus, the answer is C's.
FINAL ANSWER Blank 2: C's

Summary

The answer is 'Second' for the relevant quarter and 'C's' for the division with a profit that more than doubled. This is revealed by observing the enormous jump in Division C's profit share from Q1 to Q2, combined with the knowledge that all divisions' profits grew every quarter.

Question Independence Analysis

The two blanks are closely connected: identifying the correct quarter (Second) leads directly to finding the division (C's), and vice versa—the solution for one depends on the solution to the other.

Answer Choices Explained
Based on the available information, it must be the case that, in the
1A
First
1B
Second
1C
Third
1D
Fourth
Quarter, Division
2A
A's
2B
B's
2C
C's
net profit more than doubled from the prior quarter.
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