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. takes for granted the very conclusion it sets out to establish, simply assuming that profits rose without offering support
  3. depends on revenue figures that the company itself supplied and that may therefore be unreliable or inflated
  4. overlooks the genuine chance that the company's total revenue might actually fall rather than rise in the coming year
  5. ignores that a 20 percent revenue jump is simply too large to be at all plausible for any single company in one year

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