medium · LSAT Logical Reasoning

The company's revenue increased by 20 percent last year. Therefore, its profits must also have increased by 20 percent last year.

The reasoning in the argument is flawed because it

  1. treats two distinct financial measures as if they must move together, ignoring that the costs separating them can change
  2. assumes a percentage increase is always equivalent to an increase in absolute dollar amount
  3. depends on revenue figures that the company itself supplied and that may be unreliable
  4. overlooks the chance that the company's revenue will fall in the coming year
  5. ignores that a 20 percent revenue jump is too large to be plausible for any single year

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