by RonPurewal Thu Oct 01, 2009 7:29 am
i'm going to delete this post within 7 days if the source is not given, since it is absolutely worthless for the gmat.
it demands an unacceptably high knowledge of financial terms (dividend, etc.) - and a knowledge of how those things work - and, on top of that, is misleading (the wording of the prompt leads you to think that 50 and 52 are absolute numbers; it comes as a surprise that "dividends" are mentioned later. such trick questions are not permissible on the gmat.)
the ONLY thing you have to know about finance, for this test, is that gross profit = (revenue - cost), or (income - expenses). so, according to the gmat's required level of knowledge, the profit would be $2 based on the question prompt alone.