A certain computer company produces two different monitors, P and Q.

Question

A certain computer company produces two different monitors, P and Q. In 2010, what was the net profit from the sale of the two monitors?

(1) Of the company's expenses in 2010, rent and utilities totaled $500,000.
(2) In 2010, the company sold 50,000 units of monitor P at $300 per unit and 30,000 units of monitor Q at $650 per unit.

DS46420.02

BrentGMATPrepNow · Accepted Answer

Target question :    In 2010, what was the net profit from the sale of the two monitors?

Key concept: profit = revenue - expenses

Statement 1 : Of the company's expenses in 2010, rent and utilities totaled $500,000.  
This just tells us that a PORTION of the company's expenses = $500,000
In addition to not knowing the TOTAL expenses, we also don't know the TOTAL revenue
Statement 1 is NOT SUFFICIENT

Statement 2 : In 2010, the company sold 50,000 units of monitor P at $300 per unit and 30,000 units of monitor Q at $650 per unit.  
From this information, we COULD determine the company's TOTAL revenue (although we wouldn't waste time doing so on test day)
However, even if we know the company's total revenue, we still have no information about the expenses. 
Statement 2 is NOT SUFFICIENT

Statements 1 and 2 combined    
To answer the target question, we need the companies TOTAL expenses and its TOTAL revenue.
Statement 1 tells us that a PORTION of the company's expenses is $500,000
Statement 2 tells the company's TOTAL revenue
Since we still don't know the company's TOTAL revenue, we can't answer the  target question  with certainty
The combined statements are NOT SUFFICIENT

Answer: E

Cheers,
Brent

ArunSharma12 · Answer

net profit = total sales - total cost/expenses

statement 1:
of the total cost, some of the cost is $500,000.
not sufficient

statement 2:
this provides sufficient information to calculate total sales but total cost is unknown.
not sufficient.

combining both statements,
still total cost is unknown.
Ans: E

CrackverbalGMAT · Answer

Solution:

A new og 2021 question

Net profit = Total sales - Total expenses

St (1):- Of the company's expenses in 2010, rent and utilities totaled $500,000.

No information is provided over the total sales or "total" expenses. Only a part of the expenses have been mentioned.(Insufficient)

St(2):-In 2010, the company sold 50,000 units of monitor P at $300 per unit and 30,000 units of monitor Q at $650 per unit.
The information provided can help us compute total sales but no information is provided on expenses.(Insufficient)

Combining both

We have the information of only a part of the expenses ($500,000) but not total expenses.

Hence insufficient. Option (e)

Hope this helps

Devmitra Sen(GMAT Quant Expert)

GMATinsight · Answer

Answer: Option E

Video solution by  GMATinsight

https://www.youtube.com/watch?v=ajiw9reSEvg

GmatKnightTutor · Answer

This question may be a bit mean but, ultimately, even if we take both statements together - although we can figure out the total revenue from the sale of the two monitors in 2010 - we can't figure out the total cost (total expenses) involved.

Net Profit = Total Revenue - Total Expenses

(E) is your answer.

bumpbot · Answer

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A certain computer company produces two different monitors, P and Q.

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GMAT Data Sufficiency (DS) Questions

A certain computer company produces two different monitors, P and Q.

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