Worked example
A division has revenue of $200,000 and costs of $150,000. Find its operating profit and profit margin.
Profit = $50,000. Profit margin = $50,000 / $200,000 = 25%.
DATA INSIGHTS · GMAT-DI-TA-01
One connected lesson · distinct practice and simulation datasets · shared skill feedback.
Identify the unit and the comparison asked for, sort the relevant column, then test each statement independently. Absolute profit and profit margin are different quantities.
Read the column headings and units.
Sort the relevant column; avoid scanning blindly.
Calculate only the values needed to judge the statement.
A division has revenue of $200,000 and costs of $150,000. Find its operating profit and profit margin.
Profit = $50,000. Profit margin = $50,000 / $200,000 = 25%.