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VP
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A construction company was paid a total of $500,000 for [#permalink]
 03 Apr 2006, 21:48
A construction company was paid a total of $500,000 for construction project. The company's only costs for the project were for labor and material. Was the company's profit for the project greater than $150,000?
1) The company's total cost was three times its cost for material
2) The company's profit was greater than its cost for labor
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Manager
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St 1: 3 * Material = $50,000
St 2: profit > labor
Answer = E
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Manager
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I think its C
t = Total cost , l =labor cost and m = Material cost
so t =l+m and profit p = 500,000 -t
from 1st t =3m ==> l =2m
from 2nd p >l
==> 500000 - 3m > 2m
==> 500000 > 5m
==> 100000> m
since the total cost is 3m hence the total cost cannot exceed 300000
hence the profit is more than 150,000
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Manager
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Profit=500,000 - (L+M) labor and material
St. 1. L+M=3M
St. 2. P>L
Answer E
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GMAT Club Legend
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1)
total cost = t
cost for material = m
so t = 3m
we do not have any values for the material cost, so we can't compute the profit.
2)
p > l
Nothing useful here.
Using 1) and 2)
We have:
Profit, p = 500,000 - t = 500,000 - 3m
t = l+m = 3m --> l = 2m
500,000 - 3m > 2m
500,000 > 5m
100,000 > m
Assuming m = 100,000 (exceed the inequality), then p = 400,000 which is still greater than 150,000. So we know the profit will always be greater than 150,000 since m must be less than 100,000.
Ans C
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