Last visit was: 21 Jul 2024, 18:53 It is currently 21 Jul 2024, 18:53
Toolkit
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

# A survey of employers found that during 1993 employment costs rose 3.5

SORT BY:
Tags:
Show Tags
Hide Tags
Board of Directors
Joined: 01 Sep 2010
Posts: 4557
Own Kudos [?]: 33617 [80]
Given Kudos: 4565
Math Expert
Joined: 02 Sep 2009
Posts: 94441
Own Kudos [?]: 642824 [18]
Given Kudos: 86716
Director
Joined: 03 Aug 2012
Posts: 585
Own Kudos [?]: 3222 [14]
Given Kudos: 322
Concentration: General Management, General Management
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
WE:Information Technology (Investment Banking)
General Discussion
Manager
Joined: 11 May 2011
Posts: 234
Own Kudos [?]: 213 [0]
Given Kudos: 84
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
carcass wrote:
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%
(0) 55%
(E) 65%

Thsi question is bascially asking you to figure out that how much salary costs and fringe-benefit costs individually contribute to 3.5%.

salary costs - 3%
fringe-benefit costs - 5.5%
and both together contributed 3.5%..then salary costs contributed 20% Answer is (B)
Board of Directors
Joined: 01 Sep 2010
Posts: 4557
Own Kudos [?]: 33617 [4]
Given Kudos: 4565
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
4
Kudos
Bunuel wrote:
carcass wrote:
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%

The amount by which employment costs rose is equal to 0.035(salary costs + fringe benefit costs);

On the other hand the amount by which employment costs rose is equal to 0.03*salary costs + 0.055*fringe benefit costs;

So, 35(S+F)=30S+55F --> S=4F --> F/S=1/4 --> F/(S+F)=1/(1+4)=1/5=0.2.

As weighted average we have a distance between 3 and 5.5 (data points) = 3.5 (the average)

3 -----3.5------------------5.5

5.5 - 3.5 = 2.5 --------> the weight is more on 3 (3.5 is closer to 3 than 5.5) so 3.5 - 3 = 0.5

0.5/2.5= 0.2 ------> 20% Answer is B

In that quickly way is also correct Bunuel ??

thanks
Intern
Joined: 18 Oct 2011
Posts: 2
Own Kudos [?]: [0]
Given Kudos: 4
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
According to the weighted average salary (s) and Fringe Benefits (F) contriution would come in the ratio: 0.5:2 or 1:4
so F=4/5 New costs. I am lost after this... The question asks the F= ?% Costs at the beginning
New cost (N) = 103.5 % Old cost (C). This is approximately 80%. How did we get 20%? What am I missing here
Manager
Joined: 22 Nov 2010
Posts: 202
Own Kudos [?]: 499 [2]
Given Kudos: 75
Location: India
GMAT 1: 670 Q49 V33
WE:Consulting (Telecommunications)
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
2
Kudos
My Solution based on mixture rules:

S------------------------------FB
3-------------------------- 5.5

----------3.5-------------

5.5 -3.5 = 2 & 3.5 - 3 = 0.5

S: FB = 2: 1/2 = 4:1.

FB = 1/5 = 20%
Current Student
Joined: 23 Oct 2010
Posts: 233
Own Kudos [?]: 1137 [2]
Given Kudos: 73
Location: Azerbaijan
Concentration: Finance
Schools: HEC '15 (A)
GMAT 1: 690 Q47 V38
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
2
Kudos
x+y=z
103x+105.5y=103.5z

now multiply the 1st equation with 103 -
103x+103y=103z
103x+105.5y=103.5z

2.5y=0.5z
y/z=5/25=1/5

ans is 20%
Intern
Joined: 08 Sep 2014
Posts: 22
Own Kudos [?]: 52 [0]
Given Kudos: 53
GMAT Date: 07-11-2015
GPA: 2.9
WE:Account Management (Computer Software)
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
carcass wrote:
Bunuel wrote:
carcass wrote:
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%

The amount by which employment costs rose is equal to 0.035(salary costs + fringe benefit costs);

On the other hand the amount by which employment costs rose is equal to 0.03*salary costs + 0.055*fringe benefit costs;

So, 35(S+F)=30S+55F --> S=4F --> F/S=1/4 --> F/(S+F)=1/(1+4)=1/5=0.2.

As weighted average we have a distance between 3 and 5.5 (data points) = 3.5 (the average)

3 -----3.5------------------5.5

5.5 - 3.5 = 2.5 --------> the weight is more on 3 (3.5 is closer to 3 than 5.5) so 3.5 - 3 = 0.5

0.5/2.5= 0.2 ------> 20% Answer is B

In that quickly way is also correct Bunuel ??

thanks

I used the same method, taken from VeritasPrepKarishma post here: https://www.gmatclub.com/forum/veritas-prep-resource-links-no-longer-available-399979.html#/2011/04 ... -mixtures/
Math Expert
Joined: 02 Sep 2009
Posts: 94441
Own Kudos [?]: 642824 [0]
Given Kudos: 86716
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
carcass wrote:
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%
(0) 55%
(E) 65%

OPEN DISCUSSION OF THIS QUESTION IS HERE: https://gmatclub.com/forum/a-survey-of- ... 68678.html
Re: A survey of employers found that during 1993 employment costs rose 3.5 [#permalink]
Moderator:
Math Expert
94441 posts