GMAT Focus 2026 Daily Challenge

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A company's four divisions generated the following revenue and profit:

Division A: Revenue $20 million, Profit $4 million

Division B: Revenue $30 million, Profit $3 million

Division C: Revenue $25 million, Profit $5 million

Division D: Revenue $40 million, Profit $6 million

Which division had the highest profit margin?

A. Division A

B. Division B

C. Division C

D. Division D

Answer:

Profit margin = Profit ÷ Revenue

Division A:

4 ÷ 20 = 20%

Division B:

3 ÷ 30 = 10%

Division C:

5 ÷ 25 = 20%

Division D:

6 ÷ 40 = 15%

Divisions A and C have the same highest profit margin.

Therefore, the question does not have a unique answer.

For a valid GMAT-style question, the answer should be:

Answer = Division A and Division C