A survey of employers found that during 1993 employment cost

Question

A survey of employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefit 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 OPEN DISCUSSION OF THIS QUESTION IS HERE: a-survey-of-employers-found-that-during-1993-employment-cost-168678.html

shanghaizzle · Answer

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

DexDee · Answer

Please look up 'alligation rule' that is usually linked with mixtures. Simple weighted average problems such as this one can be fixed in a few seconds.

shanghaizzle · Answer

Kudos

(5.5-3.5):(3.5-3) = y:x 2:0.5 = y:x y:x must be 80%:20%

TomB · Answer

Hi I find the method from the following link. Take a look at "karishma" post. there is link in that post about weighted averages revenue-73058.html. thanks

TomB · Answer

Hi i understand up to 2:0.5 (alligation rule). how did you get 80%:20%. please relate this to the question i.e "fringe benefit costs represented what percent of employment costs at the beginning or 1993". please explain

ashimasood · Answer

2 Parts for salary and 0.5 for fringe benefit. So making a total of 2+0.5=2.5.
So, Fringe benefit is 0.5/2.5*100=20%.

Hope this helps...

Bunuel · Answer

A survey of employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefit 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%

Show Spoiler

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

OPEN DISCUSSION OF THIS QUESTION IS HERE: a-survey-of-employers-found-that-during-1993-employment-cost-168678.html

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Official Answer

B

A survey of employers found that during 1993 employment cost

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