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The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did

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by M7MBA » Thu Aug 27, 2020 1:23 am

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B

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E

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Difficulty—

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.

Answer: B

Source: Official Guide
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Re: The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold.

by deloitte247 » Sat Aug 29, 2020 9:58 pm
Statement 1: The profit exceeded $2 million on sales of 200,000 units.
The increase is not proportional. So, the information provided cannot be used to evaluate the profit on 380,000 units. Hence, statement 1 is NOT SUFFICIENT.


Statement 2: The profit exceeded $5 million on sales of 350,000 units.
Despite the fact that 350,000 units are less than 380,000 units, a profit of $5 million which is greater than the $4 million benchmarks has been generated. So, by the time 380,000 units will be sold, the total profit will definitely exceed $4 million. Based on this, statement 2 is SUFFICIENT.

Since only statement 2 is SUFFICIENT, the correct answer, therefore, is option B.
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