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 be\(60/40 = 3:2.\)