Data Sufficiency

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.

Confusing. Is it C?

dude..explain ur steps.

selango wrote:dude..explain ur steps.

Dude, I would explain my steps only if i know C is correct. No point my explaining something that's not even right

beatthegmatinsept wrote:

selango wrote:dude..explain ur steps.

Dude, I would explain my steps only if i know C is correct. No point my explaining something that's not even right

ha..ha..dude if i tell u OA you ll be more inclined to find the answer as per OA.

Atleast explain ur steps.we will find out what ur missing

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.

My Explanation is as follows:

Profit:- P
Amount:- A
Total Cost:- T = L (for labor) and M (materials)

P = A - T = A - (L+M)

The question was, whether P is greater than $150,000. In other words whether T (cost) is LESS THAN $350,000

Statement 2 says:

Profit is greater than cost for labor. i.e. P > L .

INSUFF

Statement 1 says:
Total cost is 3 times its cost for materials. i.e. T = 3 * M.
We already know, T = L + M.
So 3M = L + M ==> L = 2M

INSUFF

The Profit equation can be modified as: P = 500,000 - 3M. In order for profit to be more than $150,000, we need to have less than $350,000 as total cost. So 3M < $350,000. Or M < $116,666.7


Statements 1 and 2 together:

We can rewrite P as, P > 2M

Considering the information we got from Statement 1, we can say that, P is MORE THAN 2M. i.e. P > 2*116,666.7 which is indeed more than $150,000.

So C is the Answer.
Hope this is the answer.

CONSTRUCTION BUDGET= 500000 project cost= labour cost +material cost


CC=50000 PC=LC+MC PROFIT= CC-PC >150000

1.PC=3MC INSUUF A AND D OUT

2.PROFIT>LC INSUFF B OUT

COMBINE PC=3MC PROFIT>LC

PC=LC+MC
3MC=LC+MC
LC=2MC
PC= LC+LC/2
PC=3/2 LC
3500000=3/2LC LC= 2333333 MC=1166666 ANYHOW WHEN LC=2 MC AND PROFIT>LC SO DEFINETLY PROFIT IS GRAETER THAN 1500000 MC CANNT BE LESS THAN 1000000 SO LC CAN BE LES THAN 2000000 SO PROFIT WILL BE ANYHOW MORE THAN 150000

SO C

selango 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.

Given that L and M are the dollar costs for labor and materials.

Is 500,000 - (L + M) > 150,000? Or in other words:

Is L + M < 350,000?

(1) L + M = 3 M only gives ratio L to M, and the problem reduces to

"Is 3 M < 350,000?"; how do we know?

Insufficient

(2) 500,000 - (L + M) > L or 2 L + M < 500,000;

L + M could be less than 350,000 for L = 100,000 and M = 200,000;

could be equal to 350,000 for L = 125,000 and M = 100,000;

or even it could be greater than 350,000 for L = 135,000 and M = 200,000.

Genuinely insufficient under these contraints


Taken together, we have M < 100,000 with a question, "Is 3 M < 350,000?"

[spoiler]oh yes it is

C[/spoiler]