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# The profit from the sale of a certain appliance increases

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The profit from the sale of a certain appliance increases [#permalink]

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26 Aug 2012, 03:10
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The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed \$4 million on sales of 380,000 units?

(1) The profit exceeded \$2 million on sales of 200,000 units.
(2) The profit exceeded \$5 million on sales of 350,000 units.

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Question: 26
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[Reveal] Spoiler: OA

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Re: The profit from the sale of a certain appliance increases [#permalink]

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31 Aug 2012, 02:21
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SOLUTION:

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed \$4 million on sales of 380,000 units?

Two important notes from the stem:
A. The profit from the sale increases with the number of units sold, so the profit on sales of 2 units is more than the profit on sales of 1 unit;
B. That increase is not proportional, so even though the profit on sales of 2 units is more than the profit on sales of 1 unit, it's not twice as much (it can be 1.1 times more, 5 times more, ..., 1,000,000 times more).

(1) The profit exceeded \$2 million on sales of 200,000 units --> since the increase is not proportional we can not say whether the profit exceeded \$4 million on sales of 380,000 units. Not sufficient.

(2) The profit exceeded \$5 million on sales of 350,000 units --> since the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than \$4 million, then the profit on sales of 380,000 units will definitely be greater than \$4 million. Sufficient.

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Re: The profit from the sale of a certain appliance increases [#permalink]

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20 Jan 2013, 19:41
Bunuel wrote:
SOLUTION:

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed \$4 million on sales of 380,000 units?

Two important notes from the stem:
A. The profit from the sale increases with the number of units sold, so the profit on sales of 2 units is more than the profit on sales of 1 unit;
B. That increase is not proportional, so even though the profit on sales of 2 units is more than the profit on sales of 1 unit, it's not twice as much (it can be 1.1 times more, 5 times more, ..., 1,000,000 times more).

(1) The profit exceeded \$2 million on sales of 200,000 units --> since the increase is not proportional we can not say whether the profit exceeded \$4 million on sales of 380,000 units. Not sufficient.

(2) The profit exceeded \$5 million on sales of 350,000 units --> since the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than \$4 million, then the profit on sales of 380,000 units will definitely be greater than \$4 million. Sufficient.

The data is given only for 350,000 units. Here we are taking assumption that next 30,000 units fetch no loss. Is this valid point ? I'm confused.

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Re: The profit from the sale of a certain appliance increases [#permalink]

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21 Jan 2013, 03:35
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grakesh wrote:
Bunuel wrote:
SOLUTION:

The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed \$4 million on sales of 380,000 units?

Two important notes from the stem:
A. The profit from the sale increases with the number of units sold, so the profit on sales of 2 units is more than the profit on sales of 1 unit;
B. That increase is not proportional, so even though the profit on sales of 2 units is more than the profit on sales of 1 unit, it's not twice as much (it can be 1.1 times more, 5 times more, ..., 1,000,000 times more).

(1) The profit exceeded \$2 million on sales of 200,000 units --> since the increase is not proportional we can not say whether the profit exceeded \$4 million on sales of 380,000 units. Not sufficient.

(2) The profit exceeded \$5 million on sales of 350,000 units --> since the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than \$4 million, then the profit on sales of 380,000 units will definitely be greater than \$4 million. Sufficient.

The data is given only for 350,000 units. Here we are taking assumption that next 30,000 units fetch no loss. Is this valid point ? I'm confused.

We are told that: the profit from the sale increases with the number of units sold. (2) says that the profit exceeded \$5 million on sales of 350,000 units. Now, the profit on sales of 350,000 units, which is less than 380,000 units, is ALREADY greater than \$4 million, then the profit on sales of 380,000 units will definitely be greater than \$4 million.
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Re: The profit from the sale of a certain appliance increases [#permalink]

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21 Jan 2013, 07:08
Thanks for the explaination. I got it.

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Re: The profit from the sale of a certain appliance increases [#permalink]

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17 Jun 2014, 19:16
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Re: The profit from the sale of a certain appliance increases [#permalink]

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14 Jul 2015, 13:30
Hello from the GMAT Club BumpBot!

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The profit from the sale of a certain appliance increases [#permalink]

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12 Jun 2016, 06:28
The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed \$4 million on sales of 380,000 units?

(1) The profit exceeded \$2 million on sales of 200,000 units.

Cant accurately say if profit was above or below 4 million since profit is not proportional to units sold. INSUFFICIENT

(2) The profit exceeded \$5 million on sales of 350,000 units.

Profit already exceeds stipulated limit. So on sale of more units profits will increase as stated in question stem. SUFFICIENT

Ans B
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Last edited by rishi02 on 24 Aug 2016, 22:21, edited 1 time in total.

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Re: The profit from the sale of a certain appliance increases [#permalink]

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09 Aug 2016, 13:31
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The profit from the sale of a certain appliance increases, though not proportionally, with the number of units sold. Did the profit exceed \$4 million on sales of 380,000 units?

(1) The profit exceeded \$2 million on sales of 200,000 units.
(2) The profit exceeded \$5 million on sales of 350,000 units.

We are given that the profit from a sale of a certain appliance increases with the number of units sold. We need to determine whether the profit is greater than \$4 million, on sales of 380,000 units.

Statement One Alone:

The profit exceeded \$2 million on sales of 200,000 units.

Since the increase in profit with the sales of appliances is not proportional with the number of units sold, statement one does not provide enough information to determine whether the profit exceeded \$4 million on the sales of 380,000 units. We can eliminate answer choices A and D.

Statement Two Alone:

The profit exceeded \$5 million on sales of 350,000 units.

Since we know that the profit exceeded \$5 million on the sale of 350,000 units, we know that the profit would exceed \$4 million on the sale of 380,000 units. Statement two alone is sufficient to answer the question.

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Re: The profit from the sale of a certain appliance increases [#permalink]

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24 Aug 2016, 03:47
Just to verify that I have understood the basics of the question properly, I would like the ask the following:

If the numbers were flipped in the Question stem and B, and the questions asked "Did the profit exceed \$4 million on sales of 350,000 units?"

(2) The profit exceeded \$5 million on sales of 380,000 units.

will the answer then be E?

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Re: The profit from the sale of a certain appliance increases   [#permalink] 24 Aug 2016, 03:47
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