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Let total budget = 100

35 + 25 + 10 + x + y = 100
70 + x + y = 100
x + y = 30
We need x

Statement (1)

Increase in legal budget = 50% of x = 0.5x
This increase causes the total budget to become 105, so the increase = 5
0.5x = 5
x = 10

Statement (1) is sufficient

Statement (2)

Payroll budget = 25
If payroll were 80% lower:
New payroll = 20% of 25 = 5
Reduction = 20
New total budget = 100 - 20 = 80

x = 12.5% of 80
x = 0.125 × 80 = 10

Statement (2) is sufficient

Ans D

Bunuel
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.

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