QUESTION TYPE: Must be True
ANALYSIS: LSAT math time. Profit per bottle = wholesale price – costs.
The wholesale price is the same. Costs are the same, except cork costs more. If revenues are unchanged and costs increased: profit per bottle is lower.
___________
- We don’t know anything about the number of bottles.
- CORRECT. Yes. See the above equation.
- Not necessarily true. Maybe they just got better at negotiating a higher price.
- If they sold more bottles, their overall profit could be higher.
- We have no data on the relative cost of cork vs. the cost of the bottles.
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