Numerical Reasoning - graph - why the answer is correct?

Why is this answer correct?

Revenue for Q2 is 300. Cost is 250. So profit is 300,000-250,000 = 50,000 but then Q1 and Q3 are also the same.

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CamilliaAsked:
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JohnBusiness Consultant (Owner)Commented:
Ratio of profit to revenue:

Q1 = 50/200 = .25
Q2 = 50/300 = .17
Q3 = 50/250 = .20
Q4 = 100/450 = .22

Q2 is indeed the lowest and no two quarters are the same.  

/me chuckles.  Look in my BIO  I do account as a consulting role.

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AndyAinscowFreelance programmer / ConsultantCommented:
Camillia, you have posted numbers of questions asking for explanation.  From what I have seen you don't seem to be reading exactly what is wanted.  Here for example it asks not for the lowest profit but the lowest profit margin.  That it defines as the ratio of profit to revenue.  So for the same profit then the lower the revenue means the higher the margin.
☠ MASQ ☠Commented:
You need to read each question carefully and be sure you know what you are being asked to find

Although the difference between three of the columns is the same (and Column 4 has twice the difference) you are NOT being asked about the difference in the totals.

The question helps you by defining Profit Margin as a ratio of profit to revenue

You need to calculate the totals of each column and for each pair divide Profit by Revenue

Because the totals for Profit and Revenue in each quarter are different you start to see which Quarter was best for the company (high profit margin = "good" low profit margin = "bad").

You must make sure you understand what is being asked of you.  The people asking the question add extra detail to help direct you.  All the words in the question are important.
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Gustav BrockCIOCommented:
Given the neat graph, you should be able to figure this out visually - without pen and paper.

Q1, 2, and 3 all have the same profit (50), thus the Q with the highest revenue has the lowest profit margin. That is Q2.

As Q4 has a profit (100) twice of that of Q2, it should have a revenue more than twice of that of Q2 to have a lower profit margin than Q2.
It hasn't, thus the answer is Q2.
CamilliaAuthor Commented:
Thanks, guys. I wasn't quite sure what "margin" meant. I took a break from all this ... was getting stressed out and frustrated. I'll re-read this.
I actually got some of the questions marked "hard" correct last night. Gave me hope :)

I'll review some more today and see how I do on those.

Thanks guys for spending your Sunday helping out :)
JohnBusiness Consultant (Owner)Commented:
The question described it:   Profit (margin) over Revenue to get the ratio.
CamilliaAuthor Commented:
ah, yes. I'll go over some other questions today and see how I do on those.
☠ MASQ ☠Commented:
Again, I have no doubt that you have the math skills needed, you need to focus on understanding what is being asked in the question - then choose the math you need.
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