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 revenue figure was depressed by unusual external circumstances.
  3. the growth in revenue was concentrated in a few product lines rather than spread evenly.
  4. revenue from online channels expanded faster than revenue from physical stores.
  5. no amount of revenue growth can ever translate into higher profit for any business.

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