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.
OA is C
Help appreciated
Gmat prep data sufficiency question
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So we spent money for L & M and we are looking whether this cost is less than (500-150) = 350Kgotinstyle 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.
OA is C
Help appreciated
1) L+M = 3M
2M = L ( good to know but not sufficient)
2) 500 - L - M > L
500 > 2L + M = Not Suff
1+2)
500 > 2(2M) + M
500 > 5M
M < 100
we know that L =2M
so L < 200
Total cost L+M
L + M < 300
since our cost is less than 300K, and we are paid 500K
We are still in business and have at least 200K in our pocket 8)
Hence, C
LGTCH
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