The Official Solution says C but the explanation is not clear.
A construction company was paid a total of $500,000 for a construction project. The company’s only costs for the project were for labour and materials. Was the company’s profit for the project greater than $150,000?
I. The company’s total cost was three times its cost for materials.
II. The company’s profit was greater than its cost for labour.
Hi Ryan,
Its a algebra question.
Given,
Total = 5,00,000
Let labour cost = x and material cost = y
So, Expenditure = x+y
then, profit = total – expenditure.
Questions: Profit > 1.5 lakhs
So, according to the values we picked,
It is, 5,00,000 – (x+y) > 1.5 lakhs ?
So, x+y < 3.5 lakhs ?
We need to know both x and y or some relation.
Statement I is insufficient:
3y = x+y
2y = x
We have to find, is it 3y < 3.5 lakhs ?
we still dont know the range or values of x and y,
So insufficient.
Statement II is insufficient:
profit > x
5,00,000 – (x+y) > x
500000 -y > 2x
but nothing any real values. So insufficient.
Together it is sufficient.
since x = 2y,
500000 -y > 2(2y)
5y < 5,00000
y < 1,00,000
So, 3y < 3,00,000.
So, sufficient.
Answer has to be C.
hope this helps.
