Problem Solving

Veritas Prep

At a certain company, operating expenses are measured as the sum of payroll expenses and infrastructure spending. During the last fiscal year, payroll expenses increased by 5 percent and infrastructure spending increased by 1 percent. If overall operating expenses increased by 2 percent during the fiscal year, then payroll expenses represented what percent of operating expenses at the beginning of the fiscal year?

A. 20%
B. 25%
C. 33%
D. 40%
E. 50%

OA B