The net profit

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The net profit

by mangomangodolly » Mon Nov 26, 2012 9:50 am
The net profit for each Device A sold by Company X is what percent greater or less than the net profit for each Device B sold by Company X?

(1) The total cost to Company X for each Device A sold by Company X is 5% greater than the total cost to Company X for each Device B sold by Company X.

(2) The total revenue for each Device A sold by Company X is 10% greater than the total revenue for each Device B sold by Cornpany X.

A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.
Source: — Problem Solving |

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by Bill@VeritasPrep » Mon Nov 26, 2012 11:08 pm
To compare net profit per device, we'll need some information about cost per device and revenue per device.

Statement 1 gives us information about cost, but without information about revenue, we can't determine net profit. Insufficient.

Statement 2 gives us revenue information, but without cost information, we can't determine net profit. Insufficient.

When combined, we have the information we need to determine the percent difference in net profit for each device. You could easily plug in numbers to double check, but if you understand what information you need, you can solve conceptually.
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