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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 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
From 1:
Total Cost = L + M, where L and M are the costs of labour and material respectively.
Payment = $500000
We need to check if the profit is greater than $150000
This is possible if the total cost is less than 500000-150000 = 350000
There is no way to determine that from the first statement.
We can only see that L+M = 3M ie. L=2M
Hence insufficient
From 2:
Profit > L
However we cannot figure out any numerical value of the profit
Hence insufficient
From 1 and 2 combined:
L = 2M, Profit > L ie. L < Profit
Thus, Profit > 2M => M < Profit/2
Thus: L+M < 3*Profit/2
=> L+M < 1.5 Profit
=> Cost < 1.5 Profit
=> Payment - Profit < 1.5 Profit
=> Payment < 2.5 Profit
=> Profit > Payment/2.5 = 500000/2.5 = 200000 - Sufficient
Answer C
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