December 11, 2018 December 11, 2018 09:00 PM EST 10:00 PM EST Strategies and techniques for approaching featured GMAT topics. December 11 at 9 PM EST. December 13, 2018 December 13, 2018 08:00 AM PST 09:00 AM PST What people who reach the high 700's do differently? We're going to share insights, tips and strategies from data we collected on over 50,000 students who used examPAL.
Author 
Message 
TAGS:

Hide Tags

Intern
Joined: 03 Jun 2010
Posts: 15

A construction company was paid a total of $500,000 for a
[#permalink]
Show Tags
22 Jul 2010, 10:55
Question Stats:
57% (01:03) correct 43% (00:57) wrong based on 777 sessions
HideShow timer Statistics
A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. Was the company's profit greater than $150,000? (1) The company's total cost was three times its cost for materials. (2) The company's profit was greater than its cost for labor
Official Answer and Stats are available only to registered users. Register/ Login.




Math Expert
Joined: 02 Sep 2009
Posts: 51100

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
22 Jul 2010, 11:04
asch13 wrote: A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. Was the company's profit greater than $150,000?
(1) The company's total cost was three times its cost for materials.
(2) The company's profit was greater than its cost for labor Given: \(c=l+m\) Question is \(p=500c>150\) true? (1) \(c=3m\) > is \(5003m>150\) true? > is \(m<\frac{350}{3}\approx{117}\) true? Not sufficient. (2) \(500(l+m)>l\) > \(500>2l+m\). Not sufficient. (1)+(2) Question became is \(m<\frac{350}{3}\approx{117}\) true? From (1) \(c=l+m=3m\) > \(l=2m\). From (2) \(500>2l+m=4m+m=5m\) > \(m<100\). Sufficient. Answer: C.
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
Collection of Questions: PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics




Intern
Joined: 03 Jun 2010
Posts: 15

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
22 Jul 2010, 11:05
Cost(C) = Labor(L) + Materials(M) Profit(P) = 500,000C is 500,000  C > 150,000? is C < 350,000
(1) C = 3M C = 3M = L + M, L = 2M
(2) P > L Substitute 2M for L P > 2M multiply both sides by 3/2 (3/2)P > 3M Substitute C for 3M (3/2)P > C plug 150,000 in for P (3/2)(150,000) > C 225,000 > C
So, C < 350,000 and the answer is yes, so then (1) and (2) together are sufficient



Intern
Joined: 03 Jun 2010
Posts: 15

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
22 Jul 2010, 11:05
Bunuel wrote: asch13 wrote: A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. Was the company's profit greater than $150,000?
(1) The company's total cost was three times its cost for materials.
(2) The company's profit was greater than its cost for labor Given: \(c=l+m\) Question is \(p=500c>150\) true? (1) \(c=3m\) > is \(5003m>150\) true? > is \(m<\frac{350}{3}\approx{117}\) true? Not sufficient. (2) \(500(l+m)>l\) > \(500>2l+m\). Not sufficient. (1)+(2) Question became is \(m<\frac{350}{3}\approx{117}\) true? From (1) \(c=l+m=3m\) > \(l=2m\). From (2) \(500>2l+m=4m+m=5m\) > \(m<100\). Sufficient. Answer: C. wow, that was fast, I was just typing my explanation, but yours looks much simpler. thanks



Intern
Joined: 16 Jul 2010
Posts: 18

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
22 Jul 2010, 11:53
My solution: 1) Total cost = 3M, Labor = 2M, NS 2) Profit >= Labor, NS 1) and 2) Profit >= 2M, therefore profit must be at least 2M/(2M+M+2M)*$500,000 = 2/5*$500,000, therefore profit >= $200,000. Sufficient.
_________________
If you find my posts useful, please award me some Kudos!



Intern
Joined: 03 Jun 2010
Posts: 15

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
23 Jul 2010, 05:28
dauntingmcgee wrote: My solution:
1) Total cost = 3M, Labor = 2M, NS
2) Profit >= Labor, NS
1) and 2) Profit >= 2M, therefore profit must be at least 2M/(2M+M+2M)*$500,000 = 2/5*$500,000, therefore profit >= $200,000. Sufficient. Could you please explain why profit must be at least 2M/(2M+M+2M)*500,000?



Intern
Joined: 16 Jul 2010
Posts: 18

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
23 Jul 2010, 05:57
Gladly. Since from: 1) we know that Labor (L) = 2 * Materials (M), and 2) we know that Profit (P) >= L 1) and 2) combined show that P >= 2M There are only three components of the $500,000: P, L and M, so P+L+M = $500,000. The minimum amount of P is the case that P = L = 2M. In order to find what fraction P is of P+L+M we simply take \(P/(P+M+L) = 2M/(2M+M+2M) = 2M/5M = 2/5\). Now that we know what fraction of the $500,000 is P, we simply multiply 2/5 * $500,000 to get $200,000. Sufficient.
_________________
If you find my posts useful, please award me some Kudos!



Retired Moderator
Joined: 20 Dec 2010
Posts: 1820

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
19 Feb 2011, 13:59
Total budget = 500 Is profit > 150 Or is expenditure < 350 1) Total cost = Material+Labor T = M+L T = 3M 3M = M+L 2M = L Labor cost is twice that of material. If M=1, L=2; T=3. Expenditure < 350. Yes M=150; L=300; T=450; Expenditure > 350. No. Not sufficient. 2) Company's Profit P>L M=0; L=249; P=251. Expenditure <350. Yes M=399; L=1; P=100. Expenditure <350. No. Not sufficient. Combining 1 and 2; T=M+L=L/2+L T=(3/2)L P=500T=500(3/2)L P=500(3/2)L P>L 500(3/2)L>L 500>(5/2)L (5/2)L<500 L<200 Since M is half L. M should be <100 Even if we consider maximum of these; Total maximum expenditure = 200+100=300<350. Thus profit will always be >150. Ans: "C"
_________________
~fluke
GMAT Club Premium Membership  big benefits and savings



Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 8659
Location: Pune, India

Re: Cost/Profit Problem  is my explanation correct?
[#permalink]
Show Tags
19 Feb 2011, 19:27
fluke wrote: Total budget = 500
Is profit > 150
Or is expenditure < 350
1) Total cost = Material+Labor T = M+L T = 3M 3M = M+L 2M = L Labor cost is twice that of material. If M=1, L=2; T=3. Expenditure < 350. Yes M=150; L=300; T=450; Actually, you may not want to use so many variables and then plug values. Chances of error are very high in this case. Preferably, stick to algebra or reason it out as follows: >>> A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. 500,000 is divided into 3 parts  Labor costs, material costs and profit. >>> Was the company's profit greater than $150,000? Was profit > 150,000? >>> (1) The company's total cost was three times its cost for materials. labor cost + material cost = 3 * material cost labor cost = 2* material costSo now we know that 500,000 is divided into 3 parts  2*material costs (labor), material costs and profit. But no idea what these costs and profit are. Not sufficient. >>> (2) The company's profit was greater than its cost for labor Profit > labor cost but no idea how much labor cost or material cost was. Not sufficient. Together, Profit > 2 material cost so even if it was greater than 2*material cost by a very very small amount, 500,000 would have been split into 3 parts: 2*material cost (labor), material cost and 2*material cost (profit) So 2*material cost would be at least 200,000. Hence profit is at least 200,000. Sufficient. Answer (C).
_________________
[b]Karishma Veritas Prep GMAT Instructor
Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >



Intern
Joined: 22 Nov 2011
Posts: 8
Location: United States
GMAT Date: 01122012
GPA: 3.17
WE: Sales (Investment Banking)

Re: GMATprep DS1
[#permalink]
Show Tags
27 Dec 2011, 13:07
when you combine TC (total cost)= 3m (material) TC= L (labor) + m = 3m so L=2M
500TC>2m (aka L) 500>5m m<100
500  less then 300= greater then 200k
C



Manager
Joined: 29 Jul 2011
Posts: 89
Location: United States

Re: GMATprep DS1
[#permalink]
Show Tags
10 Jan 2012, 14:01
Rephrase: 500K  [L+M] >= 150K L+M <= 350K? 1. L+M = 3M => L = 2M. No info on M or L values, insuff. 2. L < 150K. M=? insuff Together, L<150K, which means M<75K, which implies that the labor cost is 3M<3x75K=225K. Obviously, this means that profit > 150K. Suff.
_________________
I am the master of my fate. I am the captain of my soul. Please consider giving +1 Kudos if deserved!
DS  If negative answer only, still sufficient. No need to find exact solution. PS  Always look at the answers first CR  Read the question stem first, hunt for conclusion SC  Meaning first, Grammar second RC  Mentally connect paragraphs as you proceed. Short = 2min, Long = 34 min



Manager
Joined: 26 May 2013
Posts: 95

Re: A construction company was paid a total of $500,000 for a
[#permalink]
Show Tags
23 Feb 2014, 22:50
Hi all. Bumping this topic because I didn't find an adequate answer explanation.
Here's mine:
Given :
Profit = 500,000  TC
TC = L + M
St. 1: (N.S.)
TC = 3M 3M = L + M 2M = L
St. 2: (N.S.)
P > L , since L = 2M , Profit > 2M
Both Statements:
P = 500,000  3M [TC = 3M from st. 1] 2M = 500,000  3M [P > L , P > 2M ] . Substitute 2M into the profit formula, knowing that the Profit number must be greater than 2M.
solve for M: ... M = $100,000. Plug into profit formula :
2($100,000) = $500,000  3($100,000)
Profit > $200,000
Answer choice C.



SVP
Joined: 26 Mar 2013
Posts: 1910

A construction company was paid a total of $500,000 for a
[#permalink]
Show Tags
04 Jun 2015, 03:39
Bunuel wrote: asch13 wrote: A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. Was the company's profit greater than $150,000?
(1) The company's total cost was three times its cost for materials.
(2) The company's profit was greater than its cost for labor Given: \(c=l+m\) Question is \(p=500c>150\) true? (1) \(c=3m\) > is \(5003m>150\) true? > is \(m<\frac{350}{3}\approx{117}\) true? Not sufficient. (2) \(500(l+m)>l\) > \(500>2l+m\). Not sufficient. (1)+(2) Question became is \(m<\frac{350}{3}\approx{117}\) true? From (1) \(c=l+m=3m\) > \(l=2m\). From (2) \(500>2l+m=4m+m=5m\) > \(m<100\). Sufficient. Answer: C. Hi Bunuel, In Statement 1 we concluded that m< 350/3= 116.66 So we can substitute the result in the equation 500(3*116)=152>150. We can choose number lower than 116. Choose 115 and apply in the equation 500(3*115)=155 > 150 any number lower than 350/3 will result in P>150. So Statement A should be Sufficient. What is wrong in my work?



Math Expert
Joined: 02 Sep 2009
Posts: 51100

Re: A construction company was paid a total of $500,000 for a
[#permalink]
Show Tags
04 Jun 2015, 03:46
Mo2men wrote: Bunuel wrote: asch13 wrote: A construction company was paid a total of $500,000 for a construction project. The company's only costs for the project were for labor and materials. Was the company's profit greater than $150,000?
(1) The company's total cost was three times its cost for materials.
(2) The company's profit was greater than its cost for labor Given: \(c=l+m\) Question is \(p=500c>150\) true? (1) \(c=3m\) > is \(5003m>150\) true? > is \(m<\frac{350}{3}\approx{117}\) true? Not sufficient.(2) \(500(l+m)>l\) > \(500>2l+m\). Not sufficient. (1)+(2) Question became is \(m<\frac{350}{3}\approx{117}\) true? From (1) \(c=l+m=3m\) > \(l=2m\). From (2) \(500>2l+m=4m+m=5m\) > \(m<100\). Sufficient. Answer: C. Hi Bunuel, In Statement 1 we concluded that m< 350/3= 116.66 So we can substitute the result in the equation 500(3*116)=152>150. We can choose number lower than 116. Choose 115 and apply in the equation 500(3*115)=155 > 150 any number lower than 350/3 will result in P>150. So Statement A should be Sufficient. What is wrong in my work? From (1) we don't know whether m<117. The question becomes "IS m<117".
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
Collection of Questions: PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics



Intern
Joined: 17 May 2016
Posts: 8

A construction company was paid a total of $500,000 for a
[#permalink]
Show Tags
18 Jun 2016, 16:23
Hi all. I’m not very good at mathy explanations (more of a verbal guy), but I got this question right first time in about 2 minutes. Here is my logic to it:
The question stem tells us that the company was paid $500k for the project, and states that only labor and material are the costs. It then asks if the company’s profit is greater than 150k. Another way of thinking of that is asking if the costs were greater than $350k. (Since $500k payment – $350k cost = $150k profit)
Statement 1 tells us that the ratio of total cost to cost of material is 3 to 1. Because the question stem states the only other cost is labor, we know that the ratio of labor cost to material cost is 2:1. For every dollar of material there is 2 dollars of labor. Not sufficient on its own.
Statement 2 tells us the company profit is greater than its cost of labor. An important part of that is that it means profit is indeed a positive number! Not sufficient on its own.
With the statements combined we know that profit is greater than labor, and the ratio of labor to material is 2:1. The limit ends up being $200k profit, $200k labor, and $100k materials. The company’s actual costs have to be lower than this limit. Even the limit only has $300k of cost, which is much lower than $350k as asked in the question stem.
Answer is C.



Intern
Joined: 26 May 2014
Posts: 40
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)

A construction company was paid a total of $500,000 for a
[#permalink]
Show Tags
26 Oct 2016, 10:20
Converting the question into equations is the key to solving this question under two mins.
What does the question stem say > Cost (C) = Labour ( L ) + Material ( M )
Cost = 500 ( dividing by 1000, makes the calculations appear less daunting )
Is Profit > 150 ?
What is profit ? > Money Earned  Money Spent
Money Earned is > 500
So Profit ( P) = 500  C
Now, Rephrasing the question stem, Is 500  C > 150 which means, Is C < 350 ?
Now, lets look at both the options.
A) C=3M
No numerical given, so there is no way to ascertain the answer to our main question.
B) Profit is > Cost of Labour  Which in mathematical terms, means the following
500  C > L
now as we already know that C= L + M, L= C M
Substituting,
500 C > C  M ,
500 > 2C  M ( Again no numerical value available to prove C< 350 )
Now , Lets combine A and B
500 >2C  M and C= 3M,
Lets get everything in terms of C as our main question is in terms of C.
500 > 2C  C/3 ,
This gives us  > C < 300 , which is sufficient to answer our main question , Is C< 350 .
Answer is C.



NonHuman User
Joined: 09 Sep 2013
Posts: 9116

Re: A construction company was paid a total of $500,000 for a
[#permalink]
Show Tags
26 Nov 2018, 11:11
Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up  doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Books  GMAT Club Tests  Best Prices on GMAT Courses  GMAT Mobile App  Math Resources  Verbal Resources




Re: A construction company was paid a total of $500,000 for a &nbs
[#permalink]
26 Nov 2018, 11:11






