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.

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

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

ektalakra · Answer

one approach for less time consumption:
for next fiscal year:
we can write wages and benefit are in a ration of 2:1 
W:B=2:1... as to get wages and benefit , we would have to multiply both with the same base value whatever comes after incrementing it with 2% and then 55% of it.
the only options that are in a ration of 2:1 are $280,500,000 and $140,250,000 .
as wages have greater proportion $280,500,000 will be the wage and other as benefit

Sneha_0410 · Answer

I believe using a calculator would be the most efficient approach for this kind of calculation. 🙂

vintichouhan · Answer

Why multiple by 1.02?

Bunuel · Answer

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.

Next fiscal year total operating expenses:

750,000,000 * 1.02 = 765,000,000

Staff compensation:

765,000,000 * 0.55 = 420,750,000

Wages:

420,750,000 * 2/3 = 280,500,000

Benefits:

420,750,000 * 1/3 = 140,250,000

Total wages: $280,500,000
Total benefits: $140,250,000

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Bunuel · Answer

Because the total operating expenses are increased by 2%, and we are asked about the next fiscal year, we need to use the increased amount. An increase of 2% is expressed as multiplying the original amount by 1.02.

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

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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

GMAT Two-part Analysis (TPA) Questions

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

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