BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

collection of tough problems from G PREP - 23

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 379
Joined: Tue Sep 30, 2008 7:17 am
Location: NY
Thanked: 28 times
Followed by:11 members

collection of tough problems from G PREP - 23

by abhasjha » Mon Feb 08, 2010 3:05 am
A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. Was the company's profit for the project greater than 150,000?

(1) The company's total cost was three times its cost for materials.
(2) The company's profit was greater than its cost for labor
Top
Source: — Data Sufficiency |
User avatar
Legendary Member
Posts: 1022
Joined: Mon Jul 20, 2009 11:49 pm
Location: Gandhinagar
Thanked: 41 times
Followed by:2 members

by shashank.ism » Mon Feb 08, 2010 3:11 am
abhasjha wrote:A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. Was the company's profit for the project greater than 150,000?

(1) The company's total cost was three times its cost for materials.
(2) The company's profit was greater than its cost for labor
Ans is C
(1) is not sufficient. (2) is not sufficient.
if combine Let M be the cost of material. So labor cost = 3M.
Now let P be the profit. So P>labor cost =3M --> P>3M.
P= 500000 - 4M > 3M --> M<500000/7 --> M< 71428.57

so max value of M = 71428.57
so max cost of labor + material = 4M= 71428.57 x 4= 285714.28

so min profit = 500,000 - 285714.28 = 214285.72

Hence profit is greater than $15,000

so Ans is C
My Websites:
www.mba.webmaggu.com - India's social Network for MBA Aspirants

www.deal.webmaggu.com -India's online discount, coupon, free stuff informer.

www.dictionary.webmaggu.com - A compact free online dictionary with images.

Nothing is Impossible, even Impossible says I'm possible.
Top
Post new topic Post Reply
• Page 1 of 1