TomB 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%

I saw this question before. I followed the karishma method(

veritas prep instructor). but i am getting wrong answer

w1/w2=a2-Aavg/Aavg-a1. Aavg=3.5(e.c),a1=3.0(s.c)/a2=5.5(f.c)

5.5-3.5/3.5-3.0.

please explain

Can you link the method that you used?

This is how I did it:

Givens:

Fringe benefits = 5.5%

Salary = 3%

Total = 3.5%

Let X be the percentage fringe benefits represents out of total employment costs

Let Y be the percentage that salary represents out of total employment costs

The question asks you what X is

X*5.5% + Y*3% = 3.5% | should be obvious

X + Y = 100% | should be obvious

Y = 100% - X | equation to substitute out Y since we're solving for X

X*5.5% + (100% - X)3% = 3.5% | substitute out Y

5.5%X + 3% - 3%X = 3.5% | multiply the parenthesis

2.5%X = 0.5% | subtract 3% from both sides and add the X

X = 20% | multiply both sides by 40

Hence B