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A company was paid $500,000. The costs were Labor & Material

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Senior Manager
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A company was paid $500,000. The costs were Labor & Material [#permalink]

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New post 12 Jun 2009, 23:25
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36) A company was paid $500,000. The costs were Labor & Materials. Was the company’s profit greater than $150,000? C
a. Total cost was three times cost for materials
b. Profit was greater than cost of labor


OA is
[Reveal] Spoiler:
d

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Re: proift and cost [#permalink]

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New post 13 Jun 2009, 07:51
I could answer the question using both the statements at best.

How can it be D ?

anybody else ?

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Re: proift and cost [#permalink]

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New post 13 Jun 2009, 09:45
goldeneagle94 wrote:
I could answer the question using both the statements at best.

How can it be D ?

anybody else ?


Can you please explain? how could you answer the questions using both. In any case, I dont see how the OA is D

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Re: proift and cost [#permalink]

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New post 13 Jun 2009, 10:18
pm4553 wrote:
goldeneagle94 wrote:
I could answer the question using both the statements at best.

How can it be D ?

anybody else ?


Can you please explain? how could you answer the questions using both. In any case, I dont see how the OA is D


C = Cost, l = labor, m = materials, P = Profit

Using both the statements,

C = l + m
C = 3m
l = 2m

P > 2m [Call this (A)]

500,000 = P + C

500,000 = P + 3m

Using (A),

500,000 + P > P + 5m

500,000 > 5m \(\small \Rightarrow\) 100,000 > m [Call this (B)]


Combining (A) & (B) together,

P + 100,000 > 3m

Since, C = 3m

P + 100,000 > C


Since, Cost = Amount - Profit

P + 100,000 > 500,000 - P

\(\small \Rightarrow\) 2P > 400,000

\(\small \Rightarrow\) P > 200,000

Answer C.

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Re: proift and cost [#permalink]

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New post 13 Jun 2009, 10:53
If I recall it correctly this is a GPrep question. Also the correct answer is C. So goldeneagle94 has got it right.

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Re: proift and cost [#permalink]

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New post 13 Jun 2009, 13:18
500-(L+M)>150?
L+M<350?

a) L+M=3M, L=2M

3M<350? insuff

b) 500-(L+M)>L

2L+M<500 insuff

together

since L=2M

2L+L/2<500

4L+L<1000

5L<1000

L<200

also since L=2M

M<100

L+M<300

so sufficient

C

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Re: proift and cost   [#permalink] 13 Jun 2009, 13:18
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A company was paid $500,000. The costs were Labor & Material

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