A survey employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefit costs. If salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993, then fringe-benefit costs represented what percent of employment costs at the beginning of 1993?

A. 16.5%

B. 20%

C. 35%

D. 55%

E. 65%

The OA is B.

I solve this PS questions of the following way,

$$s\left(1.03\right)+f\left(1.055\right)=sf\left(1.035\right)$$

$$sf=\frac{0.02}{0.005}=4$$

$$\frac{f}{s+f}=\frac{1}{5}=20\%$$

Is there another approach to solve this PS question? Can any experts help, please? Thanks!

Solve 700-Level Algebra Qs In 90 Secs!

Master 700-level Inequalities and Absolute Value Questions

Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease.

**
**

Hi AAPL,

We're told that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefit costs - and that salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993. We're asked for the percent of employment costs that were represented by fringe-benefit costs at the beginning of 1993. This question is essentially a 'Weighted Average' question. It can be solved Algebraically or by TESTing THE ANSWERS.

Since salary costs rose 3% and fringe-benefit costs rose 5.5%, but the OVERALL employment costs rose just 3.5%, we know that salary costs are a much BIGGER percent of the total costs (if salary costs and fringe-benefit costs were equal, then the overall increase would have been (3+5.5)/2 = 4.25%). Thus, fringe-benefit costs must be a relatively small part of the total. Let's TEST Answer B first....

Answer B: 20%

IF... fringe-benefit costs = 20% of total employment costs, then

salary costs = 100% - 20% = 80% of total employment costs

20:80 = 1:4

[(1)(5.5%) + 4(3%)]/5 = 17.5%/5 = 3.5%

This is an exact match for what we were told, so this must be the answer.

Final Answer: B

GMAT assassins aren't born, they're made,

Rich

0.03x + 0.055y = 0.035(x + y)

30x + 55y = 35(x + y)

30x + 55y = 35x + 35y

20y = 5x

4y = x

So fringe-benefit costs represented y/(x + y) = y/5y = 1/5 = 20%.

Answer: B

Head of GMAT Instruction

[email protected]

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

## A survey of employers found that during 1993 employment...

##### This topic has expert replies

### GMAT/MBA Expert

- [email protected]
- Elite Legendary Member
**Posts:**10392**Joined:**Sun Jun 23, 2013 6:38 pm**Location:**Palo Alto, CA**Thanked**: 2867 times**Followed by:**511 members**GMAT Score:**800

We're told that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefit costs - and that salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993. We're asked for the percent of employment costs that were represented by fringe-benefit costs at the beginning of 1993. This question is essentially a 'Weighted Average' question. It can be solved Algebraically or by TESTing THE ANSWERS.

Since salary costs rose 3% and fringe-benefit costs rose 5.5%, but the OVERALL employment costs rose just 3.5%, we know that salary costs are a much BIGGER percent of the total costs (if salary costs and fringe-benefit costs were equal, then the overall increase would have been (3+5.5)/2 = 4.25%). Thus, fringe-benefit costs must be a relatively small part of the total. Let's TEST Answer B first....

Answer B: 20%

IF... fringe-benefit costs = 20% of total employment costs, then

salary costs = 100% - 20% = 80% of total employment costs

20:80 = 1:4

[(1)(5.5%) + 4(3%)]/5 = 17.5%/5 = 3.5%

This is an exact match for what we were told, so this must be the answer.

Final Answer: B

GMAT assassins aren't born, they're made,

Rich

### GMAT/MBA Expert

- [email protected]
- GMAT Instructor
**Posts:**1462**Joined:**Thu Apr 09, 2015 9:34 am**Location:**New York, NY**Thanked**: 39 times**Followed by:**22 members

We can let x = original salary costs and y = original fringe benefits and create the equation:AAPL wrote:A survey employers found that during 1993 employment costs rose 3.5 percent, where employment costs consist of salary costs and fringe-benefit costs. If salary costs rose 3 percent and fringe-benefit costs rose 5.5 percent during 1993, then fringe-benefit costs represented what percent of employment costs at the beginning of 1993?

A. 16.5%

B. 20%

C. 35%

D. 55%

E. 65%

0.03x + 0.055y = 0.035(x + y)

30x + 55y = 35(x + y)

30x + 55y = 35x + 35y

20y = 5x

4y = x

So fringe-benefit costs represented y/(x + y) = y/5y = 1/5 = 20%.

Answer: B

**Jeffrey Miller**

Head of GMAT Instruction

[email protected]

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

- ygcrowanhand
- Senior | Next Rank: 100 Posts
**Posts:**30**Joined:**Mon Nov 24, 2014 1:47 pm**Location:**London

Hi GMATters,

Here is my video solution to this question:

https://www.youtube.com/watch?v=UgP1GZkk8p0

Rowan

Here is my video solution to this question:

https://www.youtube.com/watch?v=UgP1GZkk8p0

Rowan

Is Your GMAT Score Stuck in the 600s? This FREE 8-Video, 20-Page Guide Can Help.

https://privategmattutor.london/move-yo ... -the-700s/

PS have you seen the new GMAT Work and Rates guide? Comes with a free 8-video course.

https://yourgmatcoach.podia.com/courses ... s-problems

Learn more about Private GMAT Tutoring at: https://privategmattutor.london

https://privategmattutor.london/move-yo ... -the-700s/

PS have you seen the new GMAT Work and Rates guide? Comes with a free 8-video course.

https://yourgmatcoach.podia.com/courses ... s-problems

Learn more about Private GMAT Tutoring at: https://privategmattutor.london