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Hi mukherjee.tanuj3,
This DS question is based on a "limit" concept which is not too common on Test Day.
We're told that a company was paid $500,000 for a project and the company had only 2 expenses on the project (Labor and Materials). We're asked if the profit on the project was greater than $150,000. This is a YES/NO question.
First, let's name the variables:
P = profit
L = cost of labor
M = cost of materials
L + M + P = 500,000
Fact 1: Total Cost = 3 times the cost of materials
This translates into...
L + M = 3M
L = 2M
We can TEST VALUES to show that this tells us nothing about the profit.
If M=100, L=200, P=499,700 and the answer to the question is YES
If M=150,000, L=300,000, P=50,000 and the answer to the question is NO
Fact 1 is INSUFFICIENT
Fact 2: Profit > Labor
P > L
This tells us nothing about the value of M. The value of M would affect the value of P.
Fact 2 is INSUFFICIENT
Combined, we know the following:
L + M + P = 500,000
L=2M
P > L
With some algebra, we have...
2M + M + P = 500,000
3M + P = 500,000
We ALSO know that P > L, so P > 2M
3M + (>2M) = 500,000
(>5M) = 500,000
This tells us that M is LESS than 100,000
Since M is LESS than 100,000 and L=2M, then L is LESS than 200,000
Therefore, L + M is LESS than 300,000, P MUST be greater than 200,000
The answer to the question is ALWAYS YES.
Combined, SUFFICIENT
Final Answer: C
GMAT assassins aren't born, they're made,
Rich
