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Profit ratio is defined as the ratio of the profit...

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Profit ratio is defined as the ratio of the profit...

by swerve » Mon Nov 13, 2017 2:02 pm
Profit ratio is defined as the ratio of the profit in dollars to the investment in dollars. Was Bill's profit ratio greater than Jack's profit ratio?

(1) Bill invested $4,000 and his profit was $1,500.
(2) Jack's profit was 12 cents per dollar that he invested.

The OA is C.

Please, can any expert explain this DS question for me? I'm confused and I don't understand why that is the correct answer. Thanks.
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Source: — Data Sufficiency |

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by Jay@ManhattanReview » Mon Nov 13, 2017 9:08 pm
swerve wrote:Profit ratio is defined as the ratio of the profit in dollars to the investment in dollars. Was Bill's profit ratio greater than Jack's profit ratio?

(1) Bill invested $4,000 and his profit was $1,500.
(2) Jack's profit was 12 cents per dollar that he invested.

The OA is C.

Please, can any expert explain this DS question for me? I'm confused and I don't understand why that is the correct answer. Thanks.
Certainly, each statement alone is not sufficient as the first does not provide any information about Jack and the second does not provide information about Bill.

(1) and (2) combined:

Bill's profit ratio = 1500/4000 = 75/200 = 0.375;
Jack's profit ratio = 0.12/1 = 0.12

Thus, Bill's profit ratio (0.375) > Jack's profit ratio (0.12). Sufficient.

The correct answer: C

Hope this helps!

-Jay
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