The profit from the sale of a certain appliance increases…

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Last Updated on May 6, 2023

GMAT OFFICIAL GUIDE DS

Solution:

We are given that the profit from a sale of a certain appliance increases with the number of units sold. We need to determine whether the profit is greater than $4 million, on sales of 380,000 units.

Statement One Alone:

The profit exceeded $2 million on sales of 200,000 units.

Since the increase in profit with the sales of appliances is not proportional with the number of units sold, statement one does not provide enough information to determine whether the profit exceeded $4 million on the sales of 380,000 units. We can eliminate answer choices A and D.

Statement Two Alone:

The profit exceeded $5 million on sales of 350,000 units.

Since we know that the profit exceeded $5 million on the sale of 350,000 units, we know that the profit would exceed $4 million on the sale of 380,000 units. Statement two alone is sufficient to answer the question.

Answer: B

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