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154. A survey of employers found

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Director
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154. A survey of employers found [#permalink]  10 Mar 2011, 11:06
00:00

Difficulty:

5% (low)

Question Stats:

83% (02:07) correct 16% (01:31) wrong based on 18 sessions
154. A survey of employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefits costs. If salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993, then fringe-benefit costs represented what percent of employment costs at the beginning of 1993?
a. 16.5%
b. 20%
c. 35%
d. 55%
e. 65%
[Reveal] Spoiler: OA

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Re: 154. A survey of employers found [#permalink]  10 Mar 2011, 11:13
Baten80 wrote:
154. A survey of employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefits costs. If salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993, then fringe-benefit costs represented what percent of employment costs at the beginning of 1993?
a. 16.5%
b. 20%
c. 35%
d. 55%
e. 65%

Note that one element increased 3% and another one 5.5% and weighted average increase is closer to smaller increment so clearly that has higher weight. Weightage of fringe benefits is (3.5-3.0)/(5.5-3.0)*100 = 20%
Director
Status: GMAT Learner
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Posts: 655
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Kudos [?]: 152 [0], given: 32

Re: 154. A survey of employers found [#permalink]  10 Mar 2011, 11:55
beyondgmatscore wrote:
Baten80 wrote:
154. A survey of employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefits costs. If salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993, then fringe-benefit costs represented what percent of employment costs at the beginning of 1993?
a. 16.5%
b. 20%
c. 35%
d. 55%
e. 65%

Note that one element increased 3% and another one 5.5% and weighted average increase is closer to smaller increment so clearly that has higher weight. Weightage of fringe benefits is (3.5-3.0)/(5.5-3.0)*100 = 20%

Is this approach can be applied for the following PS

A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 % from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
1:2
4:5
1:1
3:2
5:3
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Collections:-
PSof OG solved by GC members: http://gmatclub.com/forum/collection-ps-with-solution-from-gmatclub-110005.html
DS of OG solved by GC members: http://gmatclub.com/forum/collection-ds-with-solution-from-gmatclub-110004.html
100 GMAT PREP Quantitative collection http://gmatclub.com/forum/gmat-prep-problem-collections-114358.html
Collections of work/rate problems with solutions http://gmatclub.com/forum/collections-of-work-rate-problem-with-solutions-118919.html
Mixture problems in a file with best solutions: http://gmatclub.com/forum/mixture-problems-with-best-and-easy-solutions-all-together-124644.html

Last edited by Baten80 on 11 Mar 2011, 08:07, edited 1 time in total.
Manager
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Posts: 199
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Kudos [?]: 51 [0], given: 3

Re: 154. A survey of employers found [#permalink]  10 Mar 2011, 12:29
Baten80 wrote:
beyondgmatscore wrote:
Baten80 wrote:
154. A survey of employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefits costs. If salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993, then fringe-benefit costs represented what percent of employment costs at the beginning of 1993?
a. 16.5%
b. 20%
c. 35%
d. 55%
e. 65%

Note that one element increased 3% and another one 5.5% and weighted average increase is closer to smaller increment so clearly that has higher weight. Weightage of fringe benefits is (3.5-3.0)/(5.5-3.0)*100 = 20%

Is this approach can be applied for the following PS

A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down from 1996 and revenues from truck sales in 1997 were up 7 perent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 % from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
1:2
4:5
1:1
3:2
5:3

Yes - it can be applied provided we know the % decline in Car sales in 1997 over 1996. I think that data is missing in the problem you posted. If I pick up a number , say -3% for car sales, then weightage of cars would be (7-1)/((7-(-3))*100 = 60% and weightage of truck would then be 40% and the ratio of car sales to truck sales would be60/40 = 3:2.
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Joined: 16 Nov 2010
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Location: United States (IN)
Concentration: Strategy, Technology
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Re: 154. A survey of employers found [#permalink]  11 Mar 2011, 00:50
My take on this:

EC = SC + FC

EC1 = SC1 + FC1

103.5EC = 103SC + FC105.5

So 103EC = 103SC + 103FC

=> 0.5EC = 2.5FC

=> FC/EC = 5/25 * 100 = 20%

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Re: 154. A survey of employers found [#permalink]  14 Jul 2011, 10:15
Baten80 wrote:
154. A survey of employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefits costs. If salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993, then fringe-benefit costs represented what percent of employment costs at the beginning of 1993?
a. 16.5%
b. 20%
c. 35%
d. 55%
e. 65%

In my view easiest method would be, eliminating the percentage sign
Let 3.5 be 35
5.5 be 55
and 3 be 30

then first eq: S+F=E

130S+155F=135E

5s=20F
therefore, s=4F and then E=5F
F/E=F/5F=20%
Re: 154. A survey of employers found   [#permalink] 14 Jul 2011, 10:15
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