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A corporation paid $7 million in federal taxes on its …first

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A corporation paid $7 million in federal taxes on its …first [#permalink]

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New post 12 Mar 2013, 17:47
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Question Stats:

67% (01:29) correct 33% (01:23) wrong based on 168 sessions

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A corporation paid $7 million in federal taxes on its …first $50 million of gross profits and then $30 million in federal taxes on the next $150 million in gross profits. By approximately what percent did the ratio of federal taxes to gross pro…fits increase from the …first $50 million in profits to the next $150 million in profits?

(A) 6%
(B) 14%
(C) 20%
(D) 23%
(E) 43%
[Reveal] Spoiler: OA

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Re: A corporation paid $7 million in federal taxes on its …first [#permalink]

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New post 12 Mar 2013, 23:38
carcass wrote:
A corporation paid $7 million in federal taxes on its …first $50 million of gross profits and then $30 million in federal taxes on the next $150 million in gross profits. By approximately what percent did the ratio of federal taxes to gross pro…fits increase from the …first $50 million in profits to the next $150 million in profits?

(A) 6%
(B) 14%
(C) 20%
(D) 23%
(E) 43%


Initial ratio of federal taxes to gross profits : 7/50 = 0.14

Final ratio : 30/150 = 0.2

Thus, the percentage change : (0.2-0.14)/0.14*100 = 6/14*100 = 3/7*100 = Just less than 50 % .

E.
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Re: A corporation paid $7 million in federal taxes on its …first [#permalink]

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New post 13 Mar 2013, 00:20
Difference in Ratios = (30/150) - (7/50) = (3/50)

% Change = (Change (3/50) / Original ratio (7/50)) *100 = 43%

Answer - E

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Re: A corporation paid $7 million in federal taxes on its …first [#permalink]

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New post 14 Aug 2015, 01:35
carcass wrote:
A corporation paid $7 million in federal taxes on its …first $50 million of gross profits and then $30 million in federal taxes on the next $150 million in gross profits. By approximately what percent did the ratio of federal taxes to gross pro…fits increase from the …first $50 million in profits to the next $150 million in profits?

(A) 6%
(B) 14%
(C) 20%
(D) 23%
(E) 43%

The ratio in the first case is 7/50 and in the second case is 30/150 or 10/50
percentage increase is (difference/initial quantity)*100
(3/50)/(7/50)*100 = 300/7 = 42.85
correct option is E

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Re: A corporation paid $7 million in federal taxes on its …first [#permalink]

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New post 13 Oct 2017, 10:55
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Re: A corporation paid $7 million in federal taxes on its …first   [#permalink] 13 Oct 2017, 10:55
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