📊 GMAT Exam Prep

A company's annual budget is represented by two pie charts for Year 1 and Year 2. If the total budget increased by 10% from Year 1 to Year 2, which department experienced the largest absolute increase in budget allocation? Year 1 Budget Allocation: Research (30%), Marketing (25%), Operations (35%), Admin (10%) Year 2 Budget Allocation: Research (25%), Marketing (30%), Operations (30%), Admin (15%)

A Research
B Marketing
C Operations
D Admin

✓ Correct Answer: Option B

Let B1 be Year 1 total budget. B2 = 1.1 * B1. Research: Y1=0.3B1, Y2=0.25*1.1B1=0.275B1 (Decrease). Marketing: Y1=0.25B1, Y2=0.3*1.1B1=0.33B1 (Increase of 0.08B1). Operations: Y1=0.35B1, Y2=0.3*1.1B1=0.33B1 (Decrease). Admin: Y1=0.1B1, Y2=0.15*1.1B1=0.165B1 (Increase of 0.065B1). Marketing had the largest absolute increase.

💡 Why is B) the correct answer?

The correct answer to the question "A company's annual budget is represented by two pie charts for Year 1 and Year 2. If the total budget increased by 10% from Year 1 to Year 2, which department experienced the largest absolute increase in budget allocation? Year 1 Budget Allocation: Research (30%), Marketing (25%), Operations (35%), Admin (10%) Year 2 Budget Allocation: Research (25%), Marketing (30%), Operations (30%), Admin (15%)" is Option B: Marketing.

The other options — A) Research, C) Operations, D) Admin — are incorrect for this GMAT Exam Prep question. As explained above: Let B1 be Year 1 total budget. B2 = 1.1 * B1. Research: Y1=0.3B1, Y2=0.25*1.1B1=0.275B1 (Decrease). Marketing: Y1=0.25B1, Y2=0.3*1.1B1=0.33B1 (Increase of 0.08B1). Operations: Y1=0.35B1, Y2=0.3*1.1B1…

📚 About This GMAT Exam Prep Practice Question

This 3-level GMAT Exam Prep question from the Data Insights topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

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