jjjinapinch wrote:In each of the last five years, Company K donated p percent of its annual profits to a certain scholarship fund. Did Company K donate more than $10,000 to the scholarship fund last year?
(1) Two years ago, Company K had annual profits of $3 million and donated $15,000 to the scholarship fund
(2) Last year, Company K had annual profits of $2.5 million
We are given that in each of the last five years, Company K donated p percent of its annual profits to a certain scholarship fund. We need to determine whether company K donated more than 10,000 dollars to the scholarship fund last year.
Statement One Alone:
Two years ago, Company K had annual profits of $3 million and donated $15,000 to the scholarship fund.
Using the information in statement one, we can determine a value for p.
3,000,000(p/100) = 15,000
3,000,000p = 1,500,000
p = 0.5
Thus, in each of the last 5 years, company K donated 0.5% of its profits. However, since we don't know the profit made last year, we can't answer the question. Statement one alone is not sufficient. We can eliminate answer choices A and D.
Statement Two Alone:
Last year, Company K had annual profits of $2.5 million.
Since we do not have a value for p, statement two alone is not sufficient to answer the question. We can eliminate answer choice B.
Statements One and Two Together:
Using the information in statements one and two, we can determine that last year company K donated 0.5 percent of their 2.5 million dollar profit, or $12,500, which is more than $10,000. The two statements together are sufficient.
Answer:
C
