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Profit

by selango » Wed Sep 08, 2010 7:43 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.
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by beatthegmatinsept » Wed Sep 08, 2010 8:29 am
Confusing. Is it C?
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by selango » Wed Sep 08, 2010 8:53 am
dude..explain ur steps.
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by beatthegmatinsept » Wed Sep 08, 2010 8:55 am
selango wrote:dude..explain ur steps.
Dude, I would explain my steps only if i know C is correct. No point my explaining something that's not even right :)
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by selango » Wed Sep 08, 2010 9:02 am
beatthegmatinsept wrote:
selango wrote:dude..explain ur steps.
Dude, I would explain my steps only if i know C is correct. No point my explaining something that's not even right :)
ha..ha..dude if i tell u OA you ll be more inclined to find the answer as per OA.

Atleast explain ur steps.we will find out what ur missing :)
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by roh00kan » Wed Sep 08, 2010 10:33 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.

My Explanation is as follows:

Profit:- P
Amount:- A
Total Cost:- T = L (for labor) and M (materials)

P = A - T = A - (L+M)

The question was, whether P is greater than $150,000. In other words whether T (cost) is LESS THAN $350,000

Statement 2 says:

Profit is greater than cost for labor. i.e. P > L .

INSUFF

Statement 1 says:
Total cost is 3 times its cost for materials. i.e. T = 3 * M.
We already know, T = L + M.
So 3M = L + M ==> L = 2M

INSUFF

The Profit equation can be modified as: P = 500,000 - 3M. In order for profit to be more than $150,000, we need to have less than $350,000 as total cost. So 3M < $350,000. Or M < $116,666.7


Statements 1 and 2 together:

We can rewrite P as, P > 2M

Considering the information we got from Statement 1, we can say that, P is MORE THAN 2M. i.e. P > 2*116,666.7 which is indeed more than $150,000.

So C is the Answer.
Hope this is the answer.
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by selango » Wed Sep 08, 2010 9:00 pm
OA C
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by pradeepkaushal9518 » Wed Sep 08, 2010 11:37 pm
CONSTRUCTION BUDGET= 500000 project cost= labour cost +material cost


CC=50000 PC=LC+MC PROFIT= CC-PC >150000

1.PC=3MC INSUUF A AND D OUT

2.PROFIT>LC INSUFF B OUT

COMBINE PC=3MC PROFIT>LC

PC=LC+MC
3MC=LC+MC
LC=2MC
PC= LC+LC/2
PC=3/2 LC
3500000=3/2LC LC= 2333333 MC=1166666 ANYHOW WHEN LC=2 MC AND PROFIT>LC SO DEFINETLY PROFIT IS GRAETER THAN 1500000 MC CANNT BE LESS THAN 1000000 SO LC CAN BE LES THAN 2000000 SO PROFIT WILL BE ANYHOW MORE THAN 150000

SO C
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by sanju09 » Thu Sep 09, 2010 12:47 am
selango 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.

Given that L and M are the dollar costs for labor and materials.

Is 500,000 - (L + M) > 150,000? Or in other words:

Is L + M < 350,000?

(1) L + M = 3 M only gives ratio L to M, and the problem reduces to

"Is 3 M < 350,000?"; how do we know?

Insufficient

(2) 500,000 - (L + M) > L or 2 L + M < 500,000;

L + M could be less than 350,000 for L = 100,000 and M = 200,000;

could be equal to 350,000 for L = 125,000 and M = 100,000;

or even it could be greater than 350,000 for L = 135,000 and M = 200,000.

Genuinely insufficient under these contraints


Taken together, we have M < 100,000 with a question, "Is 3 M < 350,000?"

[spoiler]oh yes it is

C[/spoiler]
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