We're given that Pharma spends $720,000 on legal expenses. Chem spends between 1/3 and 1/2 of this amount:1/3 of $720,000 = $240,0001/2 of $720,000 = $360,000So to answer this question, and given that Chem's legal expenses are 15% of its total budget, we need to ask ourselves:(a) $240K is 15% of what?(b) $360K is 15% of what?The answers:(a) $240K/.15 = $1.6M(b) $360K/.15 = $2.4MSo now it's just a matter of finding an answer that falls inside our established range. Et voilà: only (D) satisfies the condition! $1.8551M is between $1.6M and $2.4M.
I seem to have left off choice (E):$2,451,900This doesn't matter, though; (E) is outside our range, which goes only as high as $2.4 million dollars.
Post a Comment