A construction company

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needthis: Senior | Next Rank: 100 Posts; Posts: 33; Joined: Sun Feb 27, 2011 12:03 pmFollowed by: 1 member

by needthis » Sat Jul 23, 2011 5:03 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.

I am confused...Help pls!

From GMATPREP

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Source: Beat The GMAT — Data Sufficiency | Sat Jul 23, 2011 5:03 am

Ozlemg: Master | Next Rank: 500 Posts; Posts: 407; Joined: Tue Jan 25, 2011 9:19 amFollowed by: 7 members; Thanked: 25 times

by Ozlemg » Mon Jul 25, 2011 1:55 am

needthis 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.

I am confused...Help pls!

From GMATPREP

First of all, it is a hard problem!

I hope we are on the same ground that only 1 and only 2 are not sufficient to solve the problem!
Lets try them together:

we have P > L from the 1st statement which, also rephrases to P > 2M
And, P = 500,000 - 3M (because total cost = 3M)
so 500,000 - 3M > 2M --> 500,000 > 5M --> 100,000 > M

Worst Scenerion : Lets plug in M 99.999, so L is 199.998 --> when we add them 299.997 less than 350 K

The more you suffer before the test, the less you will do so in the test!

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GMATGuruNY: GMAT Instructor; Posts: 15539; Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members; Location: New York, NY; Thanked: 13060 times; GMAT Score:790

by GMATGuruNY » Mon Jul 25, 2011 2:44 am

I posted a solution here:

https://www.beatthegmat.com/profit-t83717.html

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needthis: Senior | Next Rank: 100 Posts; Posts: 33; Joined: Sun Feb 27, 2011 12:03 pmFollowed by: 1 member

by needthis » Mon Jul 25, 2011 5:49 am

My bad, should have searched first!
Thanks anyways

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