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LINE CHART: Product Sales Over 24 Months | Months 1-6 (Launch): Avg 850 units/mo, Months 7-12 (Growth): Avg 2,400 units/mo, Months 13-18 (Maturity): Avg 3,800 units/mo, Months 19-24 (Decline): Avg 2,200 units/mo. If unit contribution margin is $42, which lifecycle phase generated the most total contribution?

GMAT · 2021 · Data Insights
Question:
LINE CHART: Product Sales Over 24 Months | Months 1-6 (Launch): Avg 850 units/mo, Months 7-12 (Growth): Avg 2,400 units/mo, Months 13-18 (Maturity): Avg 3,800 units/mo, Months 19-24 (Decline): Avg 2,200 units/mo. If unit contribution margin is $42, which lifecycle phase generated the most total contribution?
Question Image

Options

(A) Launch phase
(B) Growth phase
(C) Maturity phase
(D) Decline phase
(E) Growth and Decline phases tied
Answer: (C) Maturity phase

Explanation:
Total contribution by phase: Launch = 6 × 850 × $42 = $214,200; Growth = 6 × 2,400 × $42 = $604,800; Maturity = 6 × 3,800 × $42 = $957,600; Decline = 6 × 2,200 × $42 = $554,400. Maturity phase generated most at $957,600.

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