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The total profit of corporation K was $3,400,000 in year X. What was
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Author:  Bunuel [ 23 May 2020, 06:17 ]
Post subject:  The total profit of corporation K was $3,400,000 in year X. What was

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.


DS21269

Author:  bM22 [ 23 May 2020, 10:03 ]
Post subject:  Re: The total profit of corporation K was $3,400,000 in year X. What was

Bunuel wrote:
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.

DS21269


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.

Author:  daprince [ 20 Sep 2020, 19:57 ]
Post subject:  Re: The total profit of corporation K was $3,400,000 in year X. What was

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

Author:  ishita27 [ 20 Sep 2020, 21:31 ]
Post subject:  Re: The total profit of corporation K was $3,400,000 in year X. What was

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

Author:  Basshead [ 26 Nov 2020, 17:12 ]
Post subject:  Re: The total profit of corporation K was $3,400,000 in year X. What was

Bunuel wrote:
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.


DS21269


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.

Author:  Sarmadk5 [ 04 Dec 2022, 14:26 ]
Post subject:  Re: The total profit of corporation K was $3,400,000 in year X. What was

Bunuel wrote:
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.


DS21269


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.

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