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A certain company’s net profit in September was equal to 9.8

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A certain company’s net profit in September was equal to 9.8 [#permalink] New post 13 Nov 2012, 12:06
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77% (02:01) correct 23% (00:51) wrong based on 34 sessions
A certain company’s net profit in September was equal to 9.8% of that month’s total sales, while its net profit in October was equal to 10.3% of that month’s total sales. If total sales for both months were equal, how much net profit did the company earn in October?

(1) The company’s October net profit was $19,600 higher than its September net profit.
(2) The company’s net profit in September was $384,160.

[Reveal] Spoiler:
I don't understand statement (1) is sufficient. Please, provide a detailed explanation.


Source: Grockit.com
[Reveal] Spoiler: OA
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Re: A certain company’s net profit in September was equal to 9.8 [#permalink] New post 14 Nov 2012, 00:35
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A certain company’s net profit in September was equal to 9.8% of that month’s total sales, while its net profit in October was equal to 10.3% of that month’s total sales. If total sales for both months were equal, how much net profit did the company earn in October?

(1) The company’s October net profit was $19,600 higher than its September net profit.
(2) The company’s net profit in September was $384,160.

Let Sales for each year (which is equal) is S

Profit(Sept) = 9.8 *S /100
Profit(Oct) = 10.3 *S/100

To find anything in this question we need value of Sales (S) if we have sales then we can calculate the profit for Sept and also for Oct (although only the Profit in OCt is asked)

STAT1
Profit(Oct) - Profit(Sept) = 10.3 *S/100 - 9.8 *S /100 = 0.5 * S/100 = 19,600 (given)

So, we have the value of Sales S hence we can calculate the value of Profit for oct
Hence Sufficient

STAT2
Profit(Sept) = 9.8 * S/100 = 384,160.

So, we have the value of Sales S hence we can calculate the value of Profit for oct
Hence Sufficient

So, answer is D
Hope it helps!
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Re: A certain company’s net profit in September was equal to 9.8 [#permalink] New post 14 Nov 2012, 01:01
danzig wrote:
A certain company’s net profit in September was equal to 9.8% of that month’s total sales, while its net profit in October was equal to 10.3% of that month’s total sales. If total sales for both months were equal, how much net profit did the company earn in October?

(1) The company’s October net profit was $19,600 higher than its September net profit.
(2) The company’s net profit in September was $384,160.

[Reveal] Spoiler:
I don't understand statement (1) is sufficient. Please, provide a detailed explanation.


Source: Grockit.com

Had we not known the ratio between total sales for September and for October, Statement 1 would not have been sufficient. But from the question, we can see that

\(\frac{10.3}{100}*x - \frac{9.8}{100}*x = $19600\)

Hence we can easily find the value of x and hence 10.3% of x. Sufficient.

2)\(\frac{9.8}{100}*x = $384160\).

Again, x can be easily found. Sufficient.

Hence answer is D.

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Re: A certain company’s net profit in September was equal to 9.8   [#permalink] 14 Nov 2012, 01:01
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