For the last fiscal year, University X had total operating expenses of

Question

For the last fiscal year, University X had total operating expenses of $750,000,000, of which staff compensation accounted for 52%. For the next fiscal year, University X will increase its total operating expenses by 2%, and staff compensation will account for 55% of total operating expenses. For each fiscal year, wages account for two-thirds of total staff compensation and benefits account for one-third of total staff compensation.

In the table, select for  Total wages for next fiscal year  and  Total benefits for next fiscal year  the total operating expenses devoted to wages and benefits, respectively, for the next fiscal year that are jointly consistent with the information provided. Make only two selections, one in each column.

ID: 100473

KarishmaB · Accepted Answer

One could use the calculator here and do 750 * 1.02 * .55 * .666 and 750 * 1.02 * .55 * .333 to get the values. Or make rough estimations Total expenses of 750 m will increase by 2%. 1% of 750m is 7.5m so 2% is 15m. Hence total operating expense = 765m We need 55% of this. 50% of this is 382.5 and 10% is 76.5 which means 5% is about 38. So staff compensation will account for 382.5+38 = 420 approx Benefits will be 1/3 of this i.e. 140 approx and 2/3 i.e. 280 will wages. ANSWER Wages 280, Benefits 140 Check this one minute video to know how to calculate percentages quickly: https://youtube.com/shorts/ik20fyTFlL0?feature=shared

Elite097 · Answer

chetan2u

Staff's compensation next year=0.55*1.02*750mn=420750000
Check the answer choices which will add up to 750000 in the end and we see only choices C and F do so we assign the lower value to benefits since that is 1/3rd and the larger value to wages which is 2/3rd

agrasan · Answer

Like a lot of DI questions, this question also has a piece of irrelevant information which is not required to arrive at the answer. 
 "of which staff compensation accounted for 52%."

Total staff compensation for next year = 750*(10^6)*(1.02)*(0.55) = ~480*10^6

Total wages for next fiscal year	Total benefits for next fiscal year
		$130,000,000
		$132,600,000
		$140,250,000
		$260,000,000
		$265,200,000
		$280,500,000

For the last fiscal year, University X had total operating expenses of

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Two-part Analysis (TPA) Questions

For the last fiscal year, University X had total operating expenses of

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards