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.

Source: DI OG

GMAT800JULY21 · Answer

Next fiscal year total operating expenses = 750,000,000 x 1.02 = 765,000,000

Staff compensation = 55% of 765,000,000 = 420,750,000

wages = 2/3 of staff compensation = 420,750,000 x 2/3 = 280,5000,000
benefits = 1/3 of staff compensation = 420,750,000 x 1/3 = 140,250,000

Bismuth83 · Answer

1. We are asked to find the  total wages  and  total benefits  next fiscal year. To do this, we have to write out all the changes and percentages of the total operating expenses.

2. Let's do this for the  total wages . Next fiscal year, the total operating expenses will be 2% more than $750,000,000, which is  750000000 * 1.02 =  $765,000,000. Staff compensation is 55% or  765000000 * 0.55 =  $420,750,000. The total wage next fiscal year accounts for  \frac{2}{3}  of the staff compensation or  420750000 * \frac{2}{3} =    $280,500,000  .

3. The  total benefits  for next fiscal year is calculate the same way, except it's  \frac{1}{3}  of the staff compensation or  420750000 * \frac{1}{3} =    $140,250,000  .

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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

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

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