BTGmoderatorLU wrote:Source: Economist GMAT

Last year, 'Crazy Matt's Electronics' earned 90% more than did 'Sane Dan Plumbing'. Are Matt's earnings this year higher than Dan's last year's earnings?

1) Dan earned 735,123 dollars last year.
2) Matt earned 50% less than he did last year.

The OA is B

Say, Sane Dan Plumbing' last year earning = $x, thus, Crazy Matt's Electronics' last year earning = $1.9x.

We have to find out whether Matt's earnings this year higher than Dan's last year's earnings (= x).

Let's take each statement one by one.

1) Dan earned 735,123 dollars last year.

=> x = $735,123. Insufficient.

2) Matt earned 50% less than he did last year.

=> Matt's earnings this year = 50% of 1.9x = $0.95x

Since Matt's earnings this year (= $0.95x) is NOT higher than Dan's last year's earnings (= $x), the answer is No. Sufficient.

The correct answer: B

Hope this helps!

-Jay
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