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.

FREE GMAT ALGEBRA WEBINAR
Live: 4th June 2023, 7am-9am PST
Presented by e-GMAT

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

##### This topic has expert replies
Moderator
Posts: 2113
Joined: Sun Oct 29, 2017 2:08 pm
Followed by:2 members

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

by AAPL » Thu Mar 22, 2018 5:47 am
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!

### GMAT/MBA Expert

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
by [email protected] » Thu Mar 22, 2018 11:36 am
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....

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.

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]

### GMAT/MBA Expert

GMAT Instructor
Posts: 1462
Joined: Thu Apr 09, 2015 9:34 am
Location: New York, NY
Thanked: 39 times
Followed by:22 members
by [email protected] » Fri Mar 23, 2018 11:50 am
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%
We can let x = original salary costs and y = original fringe benefits and create the equation:

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%.

Jeffrey Miller
[email protected]

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

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

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

by ygcrowanhand » Sat Jun 11, 2022 3:41 am
Hi GMATters,

Here is my video solution to this question: