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16 Dec 2012, 11:55
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
64% (01:58) correct
36%
(02:10)
wrong
based on 223
sessions
History
Date
Time
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What percent of Firm XYZ's budget will be spent on legal expenses?
GIven:
Production cost : 40%
Overhead expense : 21%
Marketing : 14%
R&D expense :X %
Legal: Q%
(1) If the firm increases its legal expenses by 50%, its total expenses would increase by 5%.
(2) Legal expenses represent less than 1/5 of the total budget.
GIven:
Production cost : 40%
Overhead expense : 21%
Marketing : 14%
R&D expense :X %
Legal: Q%
(1) If the firm increases its legal expenses by 50%, its total expenses would increase by 5%.
(2) Legal expenses represent less than 1/5 of the total budget.
17 Dec 2012, 00:02
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What percent of Firm XYZ's budget will be spent on legal expenses?
GIven:
Production cost : 40%
Overhead expense : 21%
Marketing : 14%
R&D expense :X %
Legal: Q%
(1) If the firm increases its legal expenses by 50%, its total expenses would increase by 5%. So, 50% increase in legal expenses corresponds to 5% increase in total: 0.5Q=0.05*Total --> Q/Total=1/10=10%. Sufficient.
(2) Legal expenses represent less than 1/5 of the total budget --> Q<20%. Clearly insufficient.
Answer: A.
GIven:
Production cost : 40%
Overhead expense : 21%
Marketing : 14%
R&D expense :X %
Legal: Q%
(1) If the firm increases its legal expenses by 50%, its total expenses would increase by 5%. So, 50% increase in legal expenses corresponds to 5% increase in total: 0.5Q=0.05*Total --> Q/Total=1/10=10%. Sufficient.
(2) Legal expenses represent less than 1/5 of the total budget --> Q<20%. Clearly insufficient.
Answer: A.
General Discussion
16 Dec 2012, 21:28
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What percent of Firm XYZ's budget will be spent on legal expenses? GIven:
Production cost : 40%
Overhead expense : 21%
Marketing : 14%
R&D expense :X %
Legal: Q%
X + Q = 25 <--- Call this (#)
(1) If the firm increases its legal expenses by 50%, its total expenses would increase by 5%.
1.5Q + X + 75 = 105
Sufficient with (#)
(2) Legal expenses represent less than 1/5 of the total budget.
Q < 20
Insufficient with (#)
Therefore (A) is correct.
Production cost : 40%
Overhead expense : 21%
Marketing : 14%
R&D expense :X %
Legal: Q%
X + Q = 25 <--- Call this (#)
(1) If the firm increases its legal expenses by 50%, its total expenses would increase by 5%.
1.5Q + X + 75 = 105
Sufficient with (#)
(2) Legal expenses represent less than 1/5 of the total budget.
Q < 20
Insufficient with (#)
Therefore (A) is correct.
