Profit ratio is defined as the ratio of the profit in dollars to the investment in dollars. Was Bill's profit ratio greater than Jack's profit ratio?
(1) Bill invested $4,000 and his profit was $1,500.
(2) Jack's profit was 12 cents per dollar that he invested.
The OA is C.
Please, can any expert explain this DS question for me? I'm confused and I don't understand why that is the correct answer. Thanks.
Target Test Prep is 20% off right now!
Use code FLASH20
Available with Beat the GMAT members only code
MORE DETAILS
Profit ratio is defined as the ratio of the profit...
This topic has expert replies
GMAT/MBA Expert
-
Jay@ManhattanReview
- GMAT Instructor
- Posts: 3008
- Joined: Mon Aug 22, 2016 6:19 am
- Location: Grand Central / New York
- Thanked: 470 times
- Followed by:34 members
Certainly, each statement alone is not sufficient as the first does not provide any information about Jack and the second does not provide information about Bill.swerve wrote:Profit ratio is defined as the ratio of the profit in dollars to the investment in dollars. Was Bill's profit ratio greater than Jack's profit ratio?
(1) Bill invested $4,000 and his profit was $1,500.
(2) Jack's profit was 12 cents per dollar that he invested.
The OA is C.
Please, can any expert explain this DS question for me? I'm confused and I don't understand why that is the correct answer. Thanks.
(1) and (2) combined:
Bill's profit ratio = 1500/4000 = 75/200 = 0.375;
Jack's profit ratio = 0.12/1 = 0.12
Thus, Bill's profit ratio (0.375) > Jack's profit ratio (0.12). Sufficient.
The correct answer: C
Hope this helps!
-Jay
_________________
Manhattan Review GMAT Prep
Locations: New York | Singapore | Doha | Lausanne | and many more...
Schedule your free consultation with an experienced GMAT Prep Advisor! Click here.
