An electronics company’s two divisions showed consistent performance over the last two years. In each year, the audiovisual department accounted for roughly 30 percent of the company’s sales and 70 percent of the company’s profits over the period, while the home appliance division accounted for the balance.
Which of the following statements regarding the last two years can be inferred from the statement above ?()
A. The audiovisual market is growing faster than is the home appliance division.
B. The home appliance division has realized lower profits per dollar of sales than has the audiovisual division.
C. Total dollar sales for each division has remained roughly constant for the last five years.
D. The company has devoted more money to research and development efforts in the audiovisual division than in the home appliance division.
E. To maximize profitability, the company should focus its resources on the home appliance division.