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The profit from the sale of a certain appliance increases,

Expert replies
by swerve » Fri Jan 04, 2019 10:05 am

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Answers

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B

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E

Stats

Difficulty—

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed $4 million on sales of 380,000 units?

1) The profit exceeded $2 million on sales of 200,000 units.
2) The profit exceeded $5 million on sales of 350,000 units.

The OA is B

Source: Official Guide
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Source: — Data Sufficiency |

by Brent@GMATPrepNow » Fri Jan 04, 2019 10:27 am
swerve wrote:The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed $4 million on sales of 380,000 units?

1) The profit exceeded $2 million on sales of 200,000 units.
2) The profit exceeded $5 million on sales of 350,000 units.

The OA is B

Source: Official Guide
Target question: Did the profit exceed $4 million on sales of 380,000 units?

Given: The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold.
IMPORTANT: This means that we CANNOT make any "good" assumptions about the profits from sales other those presented in statements 1 and 2. All we know FOR CERTAIN is that increased unit sales means increased profits. That's it.

Statement 1: The profit exceeded $2 million on sales of 200,000 units.
The given information (about profits NOT being proportional) means that the ONLY conclusion we can draw here is that the profit from the sale of 380,000 units must be greater than $2 million. That's it.
So, the profit from the sale of 380,000 units could be greater than $4 million or less than $4 million.
Since we cannot answer the target question with certainty, statement 1 is NOT SUFFICIENT

Statement 2: The profit exceeded $5 million on sales of 350,000 units.
From the given information, we can conclude (with certainty) that the profit from the sale of 380,000 units must be greater than $5 million.
This means that the the profit from the sale of 380,000 units DEFINITELY exceeded $4 million
Since we can answer the target question with certainty, statement 2 is SUFFICIENT

Answer: B

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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