GMAT Challenge Question

This week’s GMAT challenge from PrepForTests.com is a critical reasoning question.

The total annual value of sales of Acme Transport’s Firebird Mark II has increased steadily over the past 5 years. The total annual profits that Acme Transport have made from the Firebird Mark II have declined during the same period.

The information above most strongly supports which of the following?

1. Acme Transport’s labor costs have risen during the last 5 years.
2. Acme Transport will shortly stop producing the Firebird Mark II.
3. The proportion of Acme Transport’s total profits that come from sales of the Firebird Mark II has steadily decreased over the past 5 years.
4. The profit margin that Acme Transport has earned on sales of the Firebird Mark II has decreased over the past 5 years.
5. The total sales of all products sold by Acme Transport has increased over the past 5 years.

Have a go at answering this and then review your answer.

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