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# A company was paid $500,000. The costs were Labor & Material  post reply Question banks Downloads My Bookmarks Reviews Important topics Author Message Senior Manager Joined: 12 Mar 2009 Posts: 301 A company was paid$500,000. The costs were Labor & Material [#permalink]

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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

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Manager
Joined: 08 Feb 2009
Posts: 140
Schools: Anderson

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

How can it be D ?

anybody else ?
Director
Joined: 27 Jun 2008
Posts: 509
WE 1: Investment Banking - 6yrs

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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
Manager
Joined: 08 Feb 2009
Posts: 140
Schools: Anderson

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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

Current Student
Joined: 03 Aug 2006
Posts: 112

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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.
Director
Joined: 23 May 2008
Posts: 743

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13 Jun 2009, 13:18
500-(L+M)>150?
L+ML

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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This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

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Re: proift and cost   [#permalink] 13 Jun 2009, 13:18
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