If revenue rises and costs stay flat, profit must rise. Which assumes:
ASales mix unchanged.
BTax rates fell.
CNo new costs categories appeared.
DCustomers paid on time.
Answer & Solution
Correct answer: C. No new costs categories appeared.
1. Need 'no costs change' which assumes no new cost lines.
_Source: 501-GMAT-Questions Ch 2 Critical Reasoning_
Related questions
Editor: more articles → more readers. Assumption?Premise: city's parks budget rose 10% and crime fell 5%. Conclusion: parks reduce crime. ASurvey: 80% of nurses prefer brand X. Conclusion: X is best for hospitals. Which assumptioProfit grew while sales fell. The growth must mean the company charged more per unit. WhicWhich option identifies the ASSUMPTION underlying the argument 'students who do daily prac