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24 Jan 2022, 02:30
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
65% (01:43) correct
35%
(01:54)
wrong
based on 188
sessions
History
Date
Time
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Not Attempted Yet
A speedboat manufacturer has a variable cost-to-profit ratio based on the number of units sold. If the company sold 2,500 boats last fiscal year, and no other products, were its profits greater than $5,000,000?
(1) Its profits from the first 2,000 boats sold were greater than $4,000,000
(2) Its profits from each of the last 500 boats sold were less than $2,500
Are You Up For the Challenge: 700 Level Questions
(1) Its profits from the first 2,000 boats sold were greater than $4,000,000
(2) Its profits from each of the last 500 boats sold were less than $2,500
Are You Up For the Challenge: 700 Level Questions
My answer is incorrect. I misread the condition (2) to mean "Its profits from each of the last 500 boats sold were greater than $2,500".
Pre-thinking
Since cost-to-profit ratio is variable, we cannot extrapolate profits for boats not specifically mentioned.
(1) Only
The last 500 boats can earn positive, 0, or negative profits.
Not sufficient.
(2) Only
The first 2000 boats can earn positive, 0, or negative profits.
Not sufficient.
(1)and(2) Together
With all the profit information provided, we should be able to answer the question.
Sufficient.
Answer is (C).
Pre-thinking
Since cost-to-profit ratio is variable, we cannot extrapolate profits for boats not specifically mentioned.
(1) Only
The last 500 boats can earn positive, 0, or negative profits.
Not sufficient.
(2) Only
The first 2000 boats can earn positive, 0, or negative profits.
Not sufficient.
(1)and(2) Together
With all the profit information provided, we should be able to answer the question.
Sufficient.
Answer is (C).
24 Jan 2022, 04:38
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1) We are not told enough information. Are the prices of the boats all the same? Lets say that the first 2000 sold totaled $4.2 million ($2000 each), and then the remaining 500 sold for $1000, then the value is under $5,000,000. There just is not enough to work with.
INSUFFICIENT
2) We are only told about the last 500 boats which is not enough.
INSUFFICIENT
1+2) Together we still do not have enough information to answer this question. The first 2000 may have been sold for $4.5 million and the last 500 for $1 million, in which case the answer to the question is "yes!". However, at the same time the first 2000 could have been sold for $4,000,001 and the last 500 for $500,000, in which case the answer to the question is "no!"
INSUFFICIENT
Answer E
INSUFFICIENT
2) We are only told about the last 500 boats which is not enough.
INSUFFICIENT
1+2) Together we still do not have enough information to answer this question. The first 2000 may have been sold for $4.5 million and the last 500 for $1 million, in which case the answer to the question is "yes!". However, at the same time the first 2000 could have been sold for $4,000,001 and the last 500 for $500,000, in which case the answer to the question is "no!"
INSUFFICIENT
Answer E
