Hi amina.shaikh309,
GMAT questions are always carefully worded - the numbers involved are NEVER random and the questions asked are specifically-worded for a reason. As such, you can take advantage of those patterns when working through Quant questions.
Here, we're told a number of facts about a company:
1) It sold EVERY unit of product X that it produced.
2) Total expenses were $100,000 + 5% of revenue from those sales.
3) The company made a PROFIT on these sales.
The question asks if the company sold MORE than 21,000 units of product X. This is a YES/NO question.
Before dealing with the two Facts, notice that the expenses were MORE than $100,000 (since the revenue factors in to that calculation), but we know that the company made a PROFIT. That combination of facts will come in handy in just a moment....
Fact 1: Total revenue from product X was GREATER than $110,000
This confirms something that we already knew (the company made a profit), but we don't know how many units were sold to earn that revenue.
Fact 1 is INSUFFICIENT
Fact 2: Each unit of Product X sold brought in $5 of revenue.
Since the question asks specifically if MORE than 21,000 units were sold, we can use this number as a 'gauge'....
IF....
21,000 units were sold at $5 per unit, we'd have 21,000(5) = $105,000 of revenue
We were told that the EXPENSES = $100,000 + 5% of revenue.....
5% of $105,000 = $5,250
$100,000 + $5,250 = $105,250
In this scenario, the expenses are GREATER than the revenue....
BUT we were told that the company made a PROFIT, so this CANNOT be what happened. If only 21,000 units were sold at this price, then the company would NOT have been profitable. Thus, MORE than 21,000 units would have to have been sold.
Fact 2 is SUFFICIENT
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
