medium · LSAT Logical Reasoning

Retailer: Our total revenue increased by 15 percent this year compared to last year. Therefore, our profits must have also increased.

The retailer's argument is vulnerable to criticism because it fails to consider the possibility that

  1. the costs of running the business climbed by an even larger proportion than revenue did.
  2. last year's unusually low revenue was depressed by temporary external circumstances now gone.
  3. the growth in revenue was concentrated within a few product lines rather than spread evenly.
  4. revenue from the firm's online channels expanded faster than revenue from its physical stores.
  5. no amount of revenue growth could ever translate into any higher profit for a business.

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