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28 Apr 2026, 19:00
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Difficulty:
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Question Stats:
59% (02:11) correct
41%
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A publishing company allocated its entire annual operating budget among exactly five expense categories: printing, payroll, promotion, legal compliance, and software systems. Printing accounted for 35% of the budget, payroll for 25%, and promotion for 10%. Legal compliance accounted for x% of the budget, and software systems accounted for y% of the budget. What percent of the budget was allocated to legal compliance?
(1) If the company’s legal compliance budget had been 50% higher, the total budget would have increased by 5%.
(2) If the company’s payroll budget had been 80% lower, legal compliance would have accounted for 12.5% of the revised total budget.
(1) If the company’s legal compliance budget had been 50% higher, the total budget would have increased by 5%.
(2) If the company’s payroll budget had been 80% lower, legal compliance would have accounted for 12.5% of the revised total budget.
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01 May 2026, 03:00
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GMAT Club Official Solution:
A publishing company allocated its entire annual operating budget among exactly five expense categories: printing, payroll, promotion, legal compliance, and software systems. Printing accounted for 35% of the budget, payroll for 25%, and promotion for 10%. Legal compliance accounted for x% of the budget, and software systems accounted for y% of the budget. What percent of the budget was allocated to legal compliance?
(1) If the company’s legal compliance budget had been 50% higher, the total budget would have increased by 5%.
This statement implies that a 50% increase in the legal compliance budget would correspond to a 5% increase in the total budget. So:
0.5 * x = 0.05 * total budget
x / total budget = 0.10 = 10%
Sufficient.
(2) If the company’s payroll budget had been 80% lower, legal compliance would have accounted for 12.5% of the revised total budget.
Payroll is 25% of the original budget. If it had been 80% lower, then payroll would have become 5% of the original budget.
So the revised total budget would have been:
100% - 20% = 80% of the original budget
The statement says legal compliance would then have accounted for 12.5% of that revised total. So:
x = 12.5% * 80% of the original budget = 10% of the original budget
Thus, legal compliance accounted for 10% of the original budget.
Sufficient.
Answer: D.
A publishing company allocated its entire annual operating budget among exactly five expense categories: printing, payroll, promotion, legal compliance, and software systems. Printing accounted for 35% of the budget, payroll for 25%, and promotion for 10%. Legal compliance accounted for x% of the budget, and software systems accounted for y% of the budget. What percent of the budget was allocated to legal compliance?
(1) If the company’s legal compliance budget had been 50% higher, the total budget would have increased by 5%.
This statement implies that a 50% increase in the legal compliance budget would correspond to a 5% increase in the total budget. So:
0.5 * x = 0.05 * total budget
x / total budget = 0.10 = 10%
Sufficient.
(2) If the company’s payroll budget had been 80% lower, legal compliance would have accounted for 12.5% of the revised total budget.
Payroll is 25% of the original budget. If it had been 80% lower, then payroll would have become 5% of the original budget.
So the revised total budget would have been:
100% - 20% = 80% of the original budget
The statement says legal compliance would then have accounted for 12.5% of that revised total. So:
x = 12.5% * 80% of the original budget = 10% of the original budget
Thus, legal compliance accounted for 10% of the original budget.
Sufficient.
Answer: D.
General Discussion
28 Apr 2026, 21:31
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Total budget = 100%
Given:
Printing = 35%
Payroll = 25%
Promotion = 10%
So,
x + y = 30 ...(remaining for legal + software)
---
Statement (1):
Legal increases by 50% → total increases by 5%
So,
0.5x = 5
x = 10
Unique value → sufficient
---
Statement (2):
Payroll reduced by 80% → new payroll = 25 × 0.2 = 5
New total = 100 − 20 = 80
Given:
Legal = 12.5% of new total
So,
x = 12.5% of 80 = 10
Unique value → sufficient
---
Both statements individually give x = 10
Final Answer: D
Given:
Printing = 35%
Payroll = 25%
Promotion = 10%
So,
x + y = 30 ...(remaining for legal + software)
---
Statement (1):
Legal increases by 50% → total increases by 5%
So,
0.5x = 5
x = 10
Unique value → sufficient
---
Statement (2):
Payroll reduced by 80% → new payroll = 25 × 0.2 = 5
New total = 100 − 20 = 80
Given:
Legal = 12.5% of new total
So,
x = 12.5% of 80 = 10
Unique value → sufficient
---
Both statements individually give x = 10
Final Answer: D
