We know the profit goes up as the number of units goes up. However, it does not go up proportionally. We want to know if the profit exceeded $4 million from sales of 380,000 units.

(1) Knowing the profit exceeded $2 million on the sales of 200,000 units tells us nothing because the profit does not increase proportionally. The next 180,000 units could have profits that exceed an additional $2 million, but they could also be associated with profits that only exceed an additional $1 million. Since we don't know how the profit goes up with each unit, we cannot answer this. INSUFFICIENT

(2) Knowing the profit exceeded $5 million on the sales of 350,000 units DOES tell us something. We have already exceeded our profit of $4 million in sales with 30,000 units to spare. We also know that the profits increase as sales increase. So even if the profits are less than $0.01 per appliance, our profits from sales of 380,000 units will be greater than $4 million. SUFFICIENT

B

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.

Profit on sales of 380,000 units is > Profit on sales of 200,000 units ($2 million). Profit on sales of 380,000 units can be $10million or $3million. Hence Insufficient!

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

Profit on sales of 380,000 units is > Profit on sales of 200,000 units($5 million).Hence Sufficient!

Option B

But the question says that " though not proportionally " so we can't assume profit would be directly proportional number of units sold. However, Answer can be B, if we assume that there is no loss at all so that last (380,000 - 350,000) = 30,000 items will contribute very less profit.

Please reply if i am thinking wrong?

ahhh i see now!! why do i keep making these silly mistakes!? hopefully i can get these mistakes out now so test day i'll beat the gmat!

i'm going to take a shot at responding to amit's question ... please correct me if my reasoning is flawed.

-- statement 2 states that our target profit of $4mm has already been met on sales of 350m units. i think i see what you are saying here ... "well what happens if they gave away the remaining 30m units and actually took a loss large enough on those to make us not reach our target profit of $4mm?"

well the answer to this question is in the question stem itself "the profit from the sale of a certain appliance increases, .... with the number of units sold." translation ... they didnt sell/dump the remaining 30m appliances at below cost because a profit is always made. he could sell the remaining 30m units for a profit of $.01 per unit and the statement will still yield the same answer ... thus a is the correct answer.