Question

The cost of a renting premises is 90% of the total costs of a company. The rental price was reduced 6 times, ceteris parabus. What percentage does the rental cost constitute in the total costs of the company?

Answer 1

60%

Explanation:

Reducing the rental cost by a factor of 6 makes it be 90%/6 = 15% of the original costs of the company. The non-rental costs are 100% -90% = 10% of the original costs of running the company.

Now, the rental costs are 15%/(15%+10%) = 3/5 of the present costs of the company.

Rental cost constitutes 60% in the total costs of the company.