The total profit of corporation K was $3,400,000 in year X. What was

Question

The total profit of corporation K was $3,400,000 in year X. What was the total profit in year Y ?

(1) Income in year Y was 30 percent more than in year X.
(2) Costs in year Y were 40 percent more than in year X.

ID: 700148
DS21269

bM22 · Answer

Let Income in year X = I,
Costs in year X = C.

Statement 1: Income in year Y was 30 percent more than in year X.
Income in year Y = 130I/100.

Nothing is mentioned regarding the costs or profits in year Y. So we cannot calculate the profit.
So  Insufficient .

Statement 2: Costs in year Y were 40 percent more than in year X.
Cost in Year Y = 140C/100.
Again an incomplete statement, since nothing is known about the income in either years. So the information is incomplete.
Thus, Insufficient.

Statement 1+ Statement 2: 
Income in year Y = 130I/100.
Costs in Year Y = 140C/100.
But since we don't know the values of C and I, we cannot calculate the profit in year Y. Also, we cannot say for sure, that only income - Cost can be calculated to deduce the profit.
So overall the combination of the 2 statements is also  Insufficient .

Answer E.

daprince · Answer

What threw me off in this question was that I assumed profit = income (a common term in accounting)

ishita27 · Answer

The total profit of corporation K in year X is given.
This means we know the difference between Income and Cost.

(1) Income in year Y was 30 percent more than in year X. 
But we don't know the Income of year X, we only know the difference between Income and Cost-  INSUFFICIENT

(2) Costs in year Y were 40 percent more than in year X.
But we don't know the Cost of year X, we only know the difference between Income and Cost-  INSUFFICIENT

Together also, we only know the difference and not the actual Income and Cost . Hence   INSUFFICIENT

E is the answer

Basshead · Answer

total profit = income - costs

$3,400,000 = I - C

(1) Total profit in Year Y = 1.3I - C
No information about costs in Year Y; INSUFFICIENT.

(2) Total profit in Year Y = I - 1.4C
No information about income in Year Y; INSUFFICIENT.

(1&2)
Combined, we can make the following equation:

Total profit in Year Y = I.3I - 1.4C

However, we can't determine neither the income or costs because we only know the total profit in Year X, not the specific amount of income or costs. INSUFFICIENT.

Sarmadk5 · Answer

Statement 1, does not tell about total income of y . Just refers to percentage over X.

Statement 2, tells only cost of Y more than X .

In order to calculate total profit , There is no clue of initial investment of either X or Y.

Thus , total profit of Year cannot be calculated from given data.

Answer is E.

Posted from my mobile device

bumpbot · Answer

Automated notice from GMAT Club BumpBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

The total profit of corporation K was $3,400,000 in year X. What was

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Data Sufficiency (DS) Questions

The total profit of corporation K was $3,400,000 in year X. What was

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards