Adam is one among many employees of ABC ltd., who procures shoes at an average cost of $40. His yearly procurement budge

[M7MBA]

Adam is one among many employees of ABC ltd., who procures shoes at an average cost of $40. His yearly procurement budget is $19,000 and he receives an additional budget of $3,000 if the total number of shoes sold by the company in a year exceeds 4,000 units. Did Adam receive the additional budget amount last year?

1. Adam was able to procure 45 shoes on an average each month last year and he was given enough budget to procure all those shoes.
2. Last year, the lowest number of shoes sold by the company in a month was 377.

Answer: D

Source: e-GMAT

[deloitte247]

- Atom is one of the employees that procures shoes at an average cost of $40.
- Adam receives a yearly procurement budget of $19,000.
- With an additional budget of $3000.

Target question=> If the total number of shoes sold by the company in a year exceeds 4,000 units. Did Adam receive the additional budget amount last year?

Statement 1: Adam was able to procure 45 shoes on an average each month last year and he was given enough budget to procure all those shoes.

Adam bought 45 shoes on an average per month, and the average cost per shoe = $40.
So in one month, he spends 45 * $40 = $1800, and for 12 months, it will be $1800 * 12 = $21600.
This is greater than the annual procurement budget; so, Adam must have received the additional budget; hence, statement 1 is SUFFICIENT.

Statement 2: Last year, the lowest number of shoes sold by the company in a month was 377.
Assuming that at least 377 units of shoes were sold per month throughout the year, then the total units of shoes sold = 377 * 12 = 4524 units.
From the question, the total shoes sold by the company was > 4000 units when Adam received an additional budget. Since 4524 > 4000, he must have received an additional budget. Therefore, statement 2 is SUFFICIENT.

Since each statement alone is SUFFICIENT, then option D is the correct answer.