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Business and Finance Math Problem? |
The revenue for a sandwich shop is directly proprtional to its advertising budget. When the owner spent $2,000 a month on advertising the revenue was $120,000. If the revenue is now 180,000 how much is the owner spending on advertising? 2,000/120,000 = .01666667 (or 1 2/3%) ratio of .016666666 $120,000 in revenue divided by an ad budget of $2,000 gives you a figure of 60. For every $1 spent on advertising, $60 are returned in revenue. Therefore if $180,000 is seen in revenue, then divide it by 60 to get $3,000 in ad budget. The ratio of 0.01666stated above is close, but will put your final answer off by a few cents. The percentage of the advertising to the revenue is 1.67%, ie 2000/120000x100%=1.67% Then multiply 1.67% by 180,000 and you get $3,000. |
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