Quote:
The pharmaceutical division's interest on debt expense is 4 times that of the chemical division. What percent of the chemical division's payroll expense is the pharmaceutical division's payroll expense, rounded to the nearest whole percent?
#Pharmaceutical division
Cost of interest of debt. : 4X
Total expense : 4Y (Because ratio of interest of debt to total expense is 2 % same as in chemical division.)
Ratio of interest of debt to total expense : 2%.
Ratio of payroll to total expense : 26 % = 0.26 = 26/100
Cost of payroll in Pharmaceutical = 4Y * 26/100
#Chemical division
Cost of interest of debt: X
Total expense : Y
Ratio of interest of debt to total expense : 2%.
Ratio of payroll to total expense : 38 % = 0.38 = 38/100
Cost of payroll in Chemical = Y * 38/100
What we want is
Quote:
What percent of the chemical division's payroll expense is the pharmaceutical division's payroll expense, rounded to the nearest whole percent?
(4Y * 26/100) / (Y * 38/100)
(4Y * 26) / (Y * 38) = (104 * Y) / (38* Y). = 104 / 38 > 2
E is the only option which is over 200 % , so E is the answer.
Answer : E