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Source: — Data Sufficiency |
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by just_do_it » Mon Sep 08, 2008 7:41 pm
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 ?
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