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Director
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A construction company was paid a total of $500,000 for a construction
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Updated on: 04 Jun 2015, 02:58
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: aconstructioncompanywaspaidatotalof500000fora97745.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
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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
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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
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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
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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
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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
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08 Sep 2007, 13:15
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: aconstructioncompanywaspaidatotalof500000fora97745.html



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Re: DS  Set 2, Math 22
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08 Sep 2007, 14:45
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
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19 Jul 2008, 19:18
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: aconstructioncompanywaspaidatotalof500000fora97745.html



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Re: DSCConstruction company
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19 Jul 2008, 19:58
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: DSConstruction company
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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
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16 Jul 2009, 23:10
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
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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
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23 Jul 2013, 02:54
fozzzy wrote: What would be the difficulty level of this question? I'd say ~650. OPNE DISCUSSION OF THIS QUESTION IS HERE: aconstructioncompanywaspaidatotalof500000fora97745.html
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Re: A construction company was paid a total of $500,000 for a co
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20 Oct 2013, 23:18



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Re: A construction company was paid a total of $500,000 for a construction
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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: aconstructioncompanywaspaidatotalof500000fora97745.html
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Re: A construction company was paid a total of $500,000 for a construction
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07 Apr 2019, 07:48
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Re: A construction company was paid a total of $500,000 for a construction
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