Free GMAT Practice Questions

Question 1 of 1
ID: GMAT-CR-10
Section: Verbal Reasoning - Critical Reasoning
Topic: Resolve the Paradox
Difficulty level: Easy

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At Keya Consumer Goods Limited, the year-on-year increase in the salary of the executives who head product lines depends only on the extent of revenue growth shown by their respective product lines during the year. The product line headed by Executive A showed a year-on-year revenue growth of 10 percent, while the product line headed by Executive B showed a year-on-year revenue growth of 50 percent. However, Executive A received a year-on-year salary increase of 40 percent, while Executive B received a year-on-year salary increase of only 5 percent.

Which one of the following, if true, most helps to explain the apparent discrepancy in the information given above?

AThe product line headed by Executive A accounts for 50 percent of the total annual costs of the company, while the product line headed by Executive B accounts for only 10 percent.
BExecutive A has consistently achieved higher year-on-year salary increase than Executive B for the past five years.
CExecutive A is better connected than Executive B with the senior executives who approve each year-on-year increase in the salary of the executives who head product lines.
DThe product line headed by Executive A operates in a shrinking market whose total revenue, across all companies, had a year-on-year decrease of 30 percent, while the product line headed by Executive B operates in a booming market whose total revenue, across all companies, had a year-on-year increase of 1000 percent.
EThe number of units sold by the product line headed by Executive A during the year was eight times that sold by the product line headed by Executive B.

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