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The profit from the sale of a certain appliance increases [#permalink]
26 Aug 2012, 02:10

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Question Stats:

78% (01:44) correct
21% (01:07) wrong based on 115 sessions

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed $4 million on sales of 380,000 units?

(1) The profit exceeded $2 million on sales of 200,000 units. (2) The profit exceeded $5 million on sales of 350,000 units.

Practice Questions Question: 26 Page: 277 Difficulty: 650

Re: The profit from the sale of a certain appliance increases [#permalink]
31 Aug 2012, 01:21

1

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Expert's post

SOLUTION:

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed $4 million on sales of 380,000 units?

Two important notes from the stem: A. The profit from the sale increases with the number of units sold, so the profit on sales of 2 units is more than the profit on sales of 1 unit; B. That increase is not proportional, so even though the profit on sales of 2 units is more than the profit on sales of 1 unit, it's not twice as much (it can be 1.1 times more, 5 times more, ..., 1,000,000 times more).

(1) The profit exceeded $2 million on sales of 200,000 units --> since the increase is not proportional we can not say whether the profit exceeded $4 million on sales of 380,000 units. Not sufficient.

(2) The profit exceeded $5 million on sales of 350,000 units --> since the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than $4 million, then the profit on sales of 380,000 units will definitely be greater than $4 million. Sufficient.

Re: The profit from the sale of a certain appliance increases [#permalink]
20 Jan 2013, 18:41

Bunuel wrote:

SOLUTION:

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed $4 million on sales of 380,000 units?

Two important notes from the stem: A. The profit from the sale increases with the number of units sold, so the profit on sales of 2 units is more than the profit on sales of 1 unit; B. That increase is not proportional, so even though the profit on sales of 2 units is more than the profit on sales of 1 unit, it's not twice as much (it can be 1.1 times more, 5 times more, ..., 1,000,000 times more).

(1) The profit exceeded $2 million on sales of 200,000 units --> since the increase is not proportional we can not say whether the profit exceeded $4 million on sales of 380,000 units. Not sufficient.

(2) The profit exceeded $5 million on sales of 350,000 units --> since the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than $4 million, then the profit on sales of 380,000 units will definitely be greater than $4 million. Sufficient.

Answer: B.

The data is given only for 350,000 units. Here we are taking assumption that next 30,000 units fetch no loss. Is this valid point ? I'm confused.

Re: The profit from the sale of a certain appliance increases [#permalink]
21 Jan 2013, 02:35

Expert's post

grakesh wrote:

Bunuel wrote:

SOLUTION:

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed $4 million on sales of 380,000 units?

Two important notes from the stem: A. The profit from the sale increases with the number of units sold, so the profit on sales of 2 units is more than the profit on sales of 1 unit; B. That increase is not proportional, so even though the profit on sales of 2 units is more than the profit on sales of 1 unit, it's not twice as much (it can be 1.1 times more, 5 times more, ..., 1,000,000 times more).

(1) The profit exceeded $2 million on sales of 200,000 units --> since the increase is not proportional we can not say whether the profit exceeded $4 million on sales of 380,000 units. Not sufficient.

(2) The profit exceeded $5 million on sales of 350,000 units --> since the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than $4 million, then the profit on sales of 380,000 units will definitely be greater than $4 million. Sufficient.

Answer: B.

The data is given only for 350,000 units. Here we are taking assumption that next 30,000 units fetch no loss. Is this valid point ? I'm confused.

Please read solutions carefully.

We are told that: the profit from the sale increases with the number of units sold. (2) says that the profit exceeded $5 million on sales of 350,000 units. Now, the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than $4 million, then the profit on sales of 380,000 units will definitely be greater than $4 million.
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