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NDLadyzman
- Junior | Next Rank: 30 Posts
- Posts: 21
- Joined: Mon Feb 26, 2007 11:42 am
Can anyone explain this one? Thanks very much!!
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IMO C
company was paid $500000
in other words the company charged $500,000 for its services
i.e SP=$500,000
CP = L + M (labor + materials)
profit = SP- CP
is profit > $150,000 ?
statement 1: INSUFFICIENT because it just tells us that
CP =3M
but CP= L + M implies that L=2M
we will not be able to determine the exact amount for CP
statement 2: INSUFFICIENT because it just tells
profit >L
or SP-CP > L
we will not be able to determine the exact amount for CP from this.
however if we combine the 2 statements we get,
SP-CP > L
SP-3M > 2M
SP > 5M
$500,000 > 5M
M<$100,000
From this we can say that CP = 3M <$300,000
since SP > CP and SP-CP = $200,000 which is >$150,000 we can definitely answer the yes-no question.
hence correct answer is C
what is the OA ?
