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

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Joined: 01 Sep 2010
Posts: 3305
A corporation paid \$7 million in federal taxes on its first  [#permalink]

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12 Mar 2013, 17:47
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Difficulty:

45% (medium)

Question Stats:

69% (01:53) correct 31% (01:49) wrong based on 174 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%

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Posts: 613
Re: A corporation paid \$7 million in federal taxes on its first  [#permalink]

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12 Mar 2013, 23:38
1
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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13 Mar 2013, 00:20
Difference in Ratios = (30/150) - (7/50) = (3/50)

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

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Joined: 10 Jun 2015
Posts: 118
Re: A corporation paid \$7 million in federal taxes on its first  [#permalink]

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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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13 Oct 2017, 10:55
Hello from the GMAT Club BumpBot!

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