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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## The profit from the sale ... ##### This topic has 1 expert reply and 4 member replies ## The profit from the sale ... 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 is B ... can someone please explain how this is true?

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We know the profit goes up as the number of units goes up. However, it does not go up proportionally. We want to know if the profit exceeded $4 million from sales of 380,000 units. (1) Knowing the profit exceeded$2 million on the sales of 200,000 units tells us nothing because the profit does not increase proportionally. The next 180,000 units could have profits that exceed an additional $2 million, but they could also be associated with profits that only exceed an additional$1 million. Since we don't know how the profit goes up with each unit, we cannot answer this. INSUFFICIENT

(2) Knowing the profit exceeded $5 million on the sales of 350,000 units DOES tell us something. We have already exceeded our profit of$4 million in sales with 30,000 units to spare. We also know that the profits increase as sales increase. So even if the profits are less than $0.01 per appliance, our profits from sales of 380,000 units will be greater than$4 million. SUFFICIENT

B

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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 ? Quote: (1) The profit exceeded$2 million on sales of 200,000 units.
Profit on sales of 380,000 units is > Profit on sales of 200,000 units ($2 million). Profit on sales of 380,000 units can be$10million or $3million. Hence Insufficient! Quote: (2) The profit exceeded$5 million on sales of 350,000 units.
Profit on sales of 380,000 units is > Profit on sales of 200,000 units($5 million).Hence Sufficient! Option B _________________ Anil Gandham Welcome to BEATtheGMAT | Photography | Getting Started | BTG Community rules | MBA Watch Check out GMAT Prep Nowâ€™s online course at https://www.gmatprepnow.com/ ### GMAT/MBA Expert GMAT Instructor Joined 02 Apr 2010 Posted: 3835 messages Followed by: 523 members Upvotes: 1854 GMAT Score: 770 factor26 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.

Answer is B ... can someone please explain how this is true?
(1) For 200,000 units, the profit exceeded $2 million So, for 380,000 units, the profit exceeded (380,000 * 2)/200,000 =$3.8 million, but it is not clear if the profit exceeded $4 million or not; NOT sufficient. (2) For 350,000 units, the profit exceeded$5 million.
So, for 380,000 units, the profit exceeded (380,000 * 5)/350,000 = $5.4 million, which clearly means that the profit exceeded$4 million; SUFFICIENT.

The correct answer is B; statement 2 alone is sufficient.

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But the question says that " though not proportionally " so we can't assume profit would be directly proportional number of units sold. However, Answer can be B, if we assume that there is no loss at all so that last (380,000 - 350,000) = 30,000 items will contribute very less profit.

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ahhh i see now!! why do i keep making these silly mistakes!? hopefully i can get these mistakes out now so test day i'll beat the gmat!

i'm going to take a shot at responding to amit's question ... please correct me if my reasoning is flawed.

-- statement 2 states that our target profit of $4mm has already been met on sales of 350m units. i think i see what you are saying here ... "well what happens if they gave away the remaining 30m units and actually took a loss large enough on those to make us not reach our target profit of$4mm?"

well the answer to this question is in the question stem itself "the profit from the sale of a certain appliance increases, .... with the number of units sold." translation ... they didnt sell/dump the remaining 30m appliances at below cost because a profit is always made. he could sell the remaining 30m units for a profit of $.01 per unit and the statement will still yield the same answer ... thus a is the correct answer. • FREE GMAT Exam Know how you'd score today for$0

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