Data Sufficiency

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. did the profit exceed $4 million on sales of 380,000 units?

1) The profit exceeded $2 million on sales of 200,000 units.
2) The profit exceeded $5 million on sales of 350,000 units.

Can someone please help me understand why statement 1 is not sufficient?

This is my thinking. The question is saying that the profits will not grow proportionally and also says that the profits will increase with increased sales. Using statement 1 we can conclude that profits are increasing - $2,000,000 / 200,000 = $10 per unit. I know it says not proportionally, but from 200,000 to 380,000 clearly more units needs to be sold, why can't we assume that it will have a higher profit margin than $10 per unit, concluding that profits will surpass $ 4 million with 380k units sold?

Sorry I'm not seeing something here. Any advice is greatly appreciated. Thanks.

Brent@GMATPrepNow wrote:

ruwan_ss wrote:The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. did the profit exceed $4 million on sales of 380,000 units?

1) The profit exceeded $2 million on sales of 200,000 units.
2) The profit exceeded $5 million on sales of 350,000 units.

Can someone please help me understand why statement 1 is not sufficient?

This is my thinking. The question is saying that the profits will not grow proportionally and also says that the profits will increase with increased sales. Using statement 1 we can conclude that profits are increasing - $2,000,000 / 200,000 = $10 per unit. I know it says not proportionally, but from 200,000 to 380,000 clearly more units needs to be sold, why can't we assume that it will have a higher profit margin than $10 per unit, concluding that profits will surpass $ 4 million with 380k units sold?

Sorry I'm not seeing something here. Any advice is greatly appreciated. Thanks.

The given information does not tell us that the per-unit profit increases with the increase in units sold.
It just says that overall profits increase.
So, it could be the case that the sale of 200,000 units yields $2 million in profit, and the sale of 1,000,000 units yields $2.1 million in profit. This scenario conforms to the given conditions.

Cheers,
Brent

Thank you Brent. So, profit from the sale of a certain appliance increases with the number of units sold pretty much means that more you sell, more overall profits you will realize?

It does not mean that, more you sell more the profit margin will be.

Second question, isn't it intuitive that more you sell more profits you will realize? given that you sell for a higher price than what you bought it for.

Brent@GMATPrepNow wrote:

ruwan_ss wrote:The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. did the profit exceed $4 million on sales of 380,000 units?

1) The profit exceeded $2 million on sales of 200,000 units.
2) The profit exceeded $5 million on sales of 350,000 units.

Can someone please help me understand why statement 1 is not sufficient?

This is my thinking. The question is saying that the profits will not grow proportionally and also says that the profits will increase with increased sales. Using statement 1 we can conclude that profits are increasing - $2,000,000 / 200,000 = $10 per unit. I know it says not proportionally, but from 200,000 to 380,000 clearly more units needs to be sold, why can't we assume that it will have a higher profit margin than $10 per unit, concluding that profits will surpass $ 4 million with 380k units sold?

Sorry I'm not seeing something here. Any advice is greatly appreciated. Thanks.

The given information does not tell us that the per-unit profit increases with the increase in units sold.
It just says that overall profits increase.
So, it could be the case that the sale of 200,000 units yields $2 million in profit, and the sale of 1,000,000 units yields $2.1 million in profit. This scenario conforms to the given conditions.

Cheers,
Brent

Thank you Brent. So, profit from the sale of a certain appliance increases with the number of units sold pretty much means that more you sell, more overall profits you will realize?

It does not mean that, more you sell more the profit margin will be.

Second question, isn't it intuitive that more you sell more profits you will realize? given that you sell for a higher price than what you bought it for.

thank you Brent. it's clear now.