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GMAT Focus EditionData InsightsEasy

A project manager is analyzing the budget allocation for a new software development project. The total budget is $500,000. Development costs are estimated at $250,000, testing at $100,000, and deployment at $50,000. What percentage of the total budget is allocated to 'other' costs, assuming all remaining budget is categorized as 'other'?

  1. A10%
  2. B25%
  3. C30%
  4. D20%
Show answer & explanation

Correct answer: D. 20%

First, sum the known costs: $250,000 + $100,000 + $50,000 = $400,000. Subtract this from the total budget: $500,000 - $400,000 = $100,000 for 'other' costs. Then, calculate the percentage: ($100,000 / $500,000) * 100% = 20%.

Why the other options are wrong

  • A. Incorrect. This would imply 'other' costs are $50,000.
  • B. Incorrect. This would imply 'other' costs are $125,000.
  • C. Incorrect. This would imply 'other' costs are $150,000.

Percentage Contribution

Percentage contribution measures the proportion of a specific component relative to a total quantity, expressed as a percentage.

  • Calculated as (Part / Whole) * 100%.
  • Used to understand the relative importance or share of a component.
  • Always sums to 100% when all parts are accounted for.

Memory trick: Part over Whole, then multiply by a hundred, that's the goal!

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