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A software company contracted its sister network technologies firm to

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Bunuel
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A software company contracted its sister network technologies firm to [#permalink] New post   17 Oct 2016, 05:58
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A software company contracted its sister network technologies firm to upgrade its network and storage equipment. The sister firm charged the software company only for equipment and labor. What fraction of the total amount paid for the upgrade was the labor charge?

(1) Labor cost was $10,000 less than the total cost of the upgrade.

(2) Without the labor charge, the total cost of the upgrade would have been only 5/6 as much.
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A software company contracted its sister network technologies firm to [#permalink] New post   Updated on: 19 Oct 2016, 03:29
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1. If upgrade cost is 20000, then the labor cost is 1/3rd, where as if upgrade cost is 30000, labour cost is 1/4th.
We can't arrive at an unique solution. Hence, not sufficient

2. If x is the total cost, the cost of the upgrade without labor is 5x/6 of the total cost.
Hence, we can infer that labour cost is x/6. This is sufficient.
Option B is the answer.

Originally posted by pushpitkc on 17 Oct 2016, 10:19.
Last edited by pushpitkc on 19 Oct 2016, 03:29, edited 1 time in total.
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Re: A software company contracted its sister network technologies firm to [#permalink] New post   18 Oct 2016, 17:36
Let E be the equipment cost and L be the labor cost.
fraction for labor charge = L/ (E+L)

1. Labor cost was $10,000 less than the total cost of the upgrade
\(L = (E+L) -$10,000\)
E = $10,000
Fraction = \(\frac{L}{($10,000+ L)}\)
Insufficient.

2. Without the labor charge, the total cost of the upgrade would have been only 5/6 as much.
\(E = \frac{5}{6} * (E+L)\)
E = 5L
fraction = \(\frac{L}{(L+E)}\)
= \(\frac{L}{(L+5L)}\)
= 1/6
Sufficient

Option B
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Re: A software company contracted its sister network technologies firm to [#permalink] New post   18 Oct 2016, 20:10
Bunuel wrote:
A software company contracted its sister network technologies firm to upgrade its network and storage equipment. The sister firm charged the software company only for equipment and labor. What fraction of the total amount paid for the upgrade was the labor charge?

(1) Labor cost was $10,000 less than the total cost of the upgrade.

(2) Without the labor charge, the total cost of the upgrade would have been only 5/6 as much.


Answer :

Fraction of labour charge = Labour charge paid/ Total Amount paid

statement 1: No information about amount of Labour charge paid + No information about Total Amount. Therefore , not sufficient.
Staement 2: Let the total amount paid is X, then without the labour charge amount is 5/6X. Therefore Amount for labour charge = x-5/6x=x/6
therefore , ratio = x/6/x =1/6. Statement is sufficient .
Hence , Answer = B
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Re: A software company contracted its sister network technologies firm to [#permalink] New post   14 Oct 2022, 09:25
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Re: A software company contracted its sister network technologies firm to [#permalink]
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