DS GMAP Prep2- Profit
Total cost(Tc) = M (material)+ L (Labor) => Tc = M+L ——equation 1
we are left with question is profit (P) > $150000
P = 500000 – Tc
(i) says
Tc = 3M————equation 2
Here we can’t conclude as we don’t know what is labor cost (L)
(ii) says
profit > L
with statement two alone we cant conclude any thing because we dont know value of L
now from equation 1&2
Tc = L+ Tc/3
=> L = 2Tc/3————equation 3
from equation 3 we can say L is approx = 66% of Tc
and we know profit (P) is greater than Labor (L)
Hence we can conclude it is greater than $150000
$150000 is only only 30 % of 500000
hence using both (i) & (ii) we can conclude profit is greater than $150000
Hi Rajesh,
While dealing with word problems on DS it always makes sense to ‘deconstruct the question’ into an equation. Let the cost for labor be ‘L’ and the cost of materials be ‘M’. The total cost will be ‘L + M’.
The question here asks us whether the Profit is greater than 150000 given that the total amount paid is 500000. So Total amt paid – (L + M) = Profit
The question here now becomes ‘Is 500000 – (L+M) > 150000’ or ‘Is L – M < 350000’
Statement 1 : L + M = 3M —–> L = 2M. This does not tell us anything about L – M. Insufficient.
Statement 2 : 500000 – (L + M) > L, again does not give any information about L – M. Insufficient.
Combining 1 and 2 : 500000 – (2M + M) > 2M —–> M < 100000 and since L = 2M, L < 200000.
If M < 100000 and L < 200000, L + M < 350000. Sufficient.
OA : C