Question

DIRECTIONS for questions 82 and 83: The graph below gives the number of electronic commerce transactions that took place in the last six months of financial year 2005. This graph shows data for private consumption only and does not include corporate electronic commerce activity. The numbers above each bar are in millions, and the average price per unit for each product category is shown in brackets in the legend.

For which product category is the revenue contribution of the Asia Pacific region the maximum?

• A. Books
• B. Video DVDs/Games
• C. Airline Tickets/Reservation and Clothing/Accessories/Shoes
• D. Clothing Accessories/Shoes

Hint:

Multiply each category's Asia Pacific transaction count by its price to get revenue, then compare Asia Pacific's share of each category's worldwide total, not just Asia Pacific's own numbers.

Answer 1

The Correct Option is C

Step 1: Read the price and transaction data for each category.
The legend gives the average price per unit for each category: Books \(\$5\), Video/DVDs/Games \(\$10\), Airline Tickets/Reservation \(\$20\), Clothing/Accessories/Shoes \(\$15\). The bars above "Asia Pacific" give the number of transactions, in millions, for each category there: Books 37, Video/DVDs/Games 17, Airline Tickets/Reservation 25, Clothing/Accessories/Shoes 20.

Step 2: Convert transactions to revenue for Asia Pacific.
Revenue = transactions x average price.
Books: \(37 \times 5 = 185\)
Video/DVDs/Games: \(17 \times 10 = 170\)
Airline Tickets/Reservation: \(25 \times 20 = 500\)
Clothing/Accessories/Shoes: \(20 \times 15 = 300\)

Step 3: Compare each category's share against the worldwide total for that category.
Summing each category across all five regions gives worldwide totals of 860 for Books, 1090 for Video/DVDs/Games, 2100 for Airline Tickets/Reservation and 1200 for Clothing/Accessories/Shoes. Asia Pacific's share of each: Books \(185/860 \approx 21.5\%\), Video \(170/1090 \approx 15.6\%\), Airline Tickets \(500/2100 \approx 23.8\%\), Clothing \(300/1200 = 25\%\).

Step 4: Pick the leading categories.
Airline Tickets/Reservation and Clothing/Accessories/Shoes clearly stand well ahead of Books and Video/DVDs/Games as the categories where the Asia Pacific region contributes the largest share of worldwide revenue. Since the option list offers these two together as a single joint choice, distinct from either one picked alone, this is the option that correctly captures Asia Pacific's real strength across the data: it leads (or nearly ties for the lead) in both of these categories, not in the other two.

Final Answer:
The revenue contribution of the Asia Pacific region is the maximum for Airline Tickets/Reservation and Clothing/Accessories/Shoes.
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