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

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Director
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A construction company was paid a total of $500,000 for a construction  [#permalink]

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New post Updated on: 04 Jun 2015, 02:58
1
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

56% (02:07) correct 44% (02:33) wrong based on 61 sessions

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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 for the project 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.

OPNE DISCUSSION OF THIS QUESTION IS HERE: a-construction-company-was-paid-a-total-of-500-000-for-a-97745.html

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Originally posted by LM on 24 Jun 2007, 21:05.
Last edited by Bunuel on 04 Jun 2015, 02:58, edited 1 time in total.
Renamed the topic, edited the question and added the OA.
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Re: A construction company was paid a total of $500,000 for a construction  [#permalink]

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New post 24 Jun 2007, 21:24
I agree with Himalayan, the answer is A
The reason that it is not B as from A, if the materials costed three times less that the total
so 3x = 500,000
so the materials costed, (500,000/3) = 166000, which means that the profit could not be more than 150,000, hence the question is answered

Stmt 2: is insufficient as it says that the cost of labor was less than the profit, so in this case could e like 50,000(assume) which does not suggest anything about the cost of materials
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Re: A construction company was paid a total of $500,000 for a construction  [#permalink]

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New post 24 Jun 2007, 22:44
Himalayan wrote:
LM wrote:
This can be solved faster


A.


Can you explain Please? Urgent help needed
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Re: A construction company was paid a total of $500,000 for a construction  [#permalink]

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New post 24 Jun 2007, 23:21
Nice Q, got E as well, but since you have posted it, guess it is not the OA.

Awaiting the expln and OA :)
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Re: A construction company was paid a total of $500,000 for a construction  [#permalink]

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New post 25 Jun 2007, 03:16
(C)

formula : Revenue = Costs + Profit

Costs = 500.000 = Labor + Material = L + M.

(1) L+M = 3M = 500.000, then L = 333.000
not suff

(2) P > L
not suff

(1) + (2) P > L = 333.000. got it. (C)
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Re: A construction company was paid a total of $500,000 for a construction  [#permalink]

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New post 25 Jun 2007, 03:21
grad_mba wrote:
Nice Q, got E as well, but since you have posted it, guess it is not the OA.

Awaiting the expln and OA :)


http://www.gmatclub.com/phpbb/viewtopic ... on+company
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A construction company was paid a total of $500,000 for a  [#permalink]

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New post 08 Sep 2007, 13:15
2
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 for the project 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.

OPNE DISCUSSION OF THIS QUESTION IS HERE: a-construction-company-was-paid-a-total-of-500-000-for-a-97745.html
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Re: DS - Set 2, Math 22  [#permalink]

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New post 08 Sep 2007, 14:45
2
gluon 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 for the project 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.


C.

Set L=Labor Cost, M=Material Cost
The question is asking if
500,000 - L - M > 150,000
L + M < 350,000

(1) L + M = 3M
L = 2M
We can pick value for L and M that makes L+M less or greater than 350,000
INSUFFICIENT

(2) 500,000 - L - M > L
2L + M < 500,000
Say L = 1, M = 250,000, which makes L + M less than 350,000
Say L = 1, M = 400,000, which makes L + M more than 350,000
INSUFFICIENT

Together, you have L = 2M
So the question is really asking if:
3M < 350,000
M < 116,666

Plug L=2M in (2), you get
5M < 500,000
M < 100,000
SUFFICIENT
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A construction company was paid a total of $500,000 for a co  [#permalink]

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New post 19 Jul 2008, 19:18
8
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 for the project 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.

OPNE DISCUSSION OF THIS QUESTION IS HERE: a-construction-company-was-paid-a-total-of-500-000-for-a-97745.html
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Re: DS-CConstruction company  [#permalink]

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New post 19 Jul 2008, 19:58
7
7
Project Amount = 500000
Total Cost = t
Labour Cost = l
Material Cost = m
t = l+m
Profit = 500000 - t

1) t = 3m
=> 3m = l+m
=> 2m = l
Not sufficient

2)
Profit > l or Profit > 2m
Not sufficient

Combining Profit = 500000 - 3m > 2m
=> 500000 > 5m
=> 100000 > m
=> m < 100000
=> l < 200000
=> m+l < 300000
Profit = 500000 - 300000 = 200000 (Minimum), which is more than 150000.

So Answer is C.
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Re: DS-Construction company  [#permalink]

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New post 19 Jul 2008, 20:13
MamtaKrishnia wrote:
A construction company was paid a total of $500,000 for a construction project. The company's only cost for the project were for labor and materials. Was the company's profit for the project greater than $150,000?

a) The company's total cost was three times its cost for material.
b) The company's profit was greater than its cost for labor.


1. TC = LC + MC; 300,000 = LC + MC
TC = 3MC
LC = 2MC

2. Profit = 500,000 - TC

Combining
say 150,000 = 5000,000 - 3MC
MC = 350,000/3 = approx 113,000
LC = approx 226,000
Hence profit has to be greater than 150,000 since LC = 2MC and Profit > LC
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Re: construction company  [#permalink]

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New post 16 Jul 2009, 23:10
3
asimov 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 for the project 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.


Ans is C

I will denote total cost by C, Material cost by m, Labor cost by l and profit by P

stmt 1: C = 3m = m+l

thus L = 2m....... not sufficient

stmt 2: P>L....... not sufficient

combine: 500000 - C = P

500000 - 3m > 2m......... (ie, P > L)

m < 100000

so 3m or C < 300000

Thus P > 200000
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Re: A construction company was paid a total of $500,000 for a  [#permalink]

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New post 23 Jul 2013, 02:49
What would be the difficulty level of this question?
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Re: A construction company was paid a total of $500,000 for a  [#permalink]

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New post 23 Jul 2013, 02:54
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Re: A construction company was paid a total of $500,000 for a co  [#permalink]

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New post 20 Oct 2013, 23:18
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Re: A construction company was paid a total of $500,000 for a construction  [#permalink]

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New post 04 Jun 2015, 02:59
LM 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 for the project 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.


OPNE DISCUSSION OF THIS QUESTION IS HERE: a-construction-company-was-paid-a-total-of-500-000-for-a-97745.html
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Re: A construction company was paid a total of $500,000 for a construction  [#permalink]

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Re: A construction company was paid a total of $500,000 for a construction   [#permalink] 07 Apr 2019, 07:48
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