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# A construction company was paid a total of \$500,000 for

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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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[#permalink]  03 Apr 2006, 21:59
St 1: 3 * Material = \$50,000

St 2: profit > labor

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[#permalink]  04 Apr 2006, 04:00
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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[#permalink]  04 Apr 2006, 04:08
Profit=500,000 - (L+M) labor and material

St. 1. L+M=3M

St. 2. P>L

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[#permalink]  04 Apr 2006, 04:58
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
[#permalink] 04 Apr 2006, 04:58
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