5. When managing a business, it is important to take inventory of where your money is spent. You have a monthly budget of $5,000. Refer to the table below and answer the questions that follow. Round your answers to the nearest tenth of a percent.
Category Cost Percentage
Labor $1,835
Materials 18%
Rent and utilities 25%
Miscellaneous $1,015
Total $5,000 100%
a. What percentage of the total monthly budget is spent on labor?
b. What percentage of the total monthly budget is spent on miscellaneous items?
c. How much do materials cost monthly?
d. How much do rent and utilities cost monthly?
a. What percentage of the total monthly budget is spent on labor?
1,835/5,000= 36.7%
b. What percentage of the total monthly budget is spent on miscellaneous items?
1,015/5,000=20.3%
c. How much do materials cost monthly?
5,000*.18= $900
d. How much do rent and utilities cost monthly?
5,000*.25= $1250
To answer these questions, we need to perform some calculations based on the information provided in the table.
a. To find the percentage of the total monthly budget spent on labor, we can simply divide the cost of labor ($1,835) by the total monthly budget ($5,000) and multiply by 100 to convert the result into a percentage.
Percentage of labor = (Cost of labor / Total monthly budget) * 100 = (1835 / 5000) * 100 = 36.7%
Therefore, 36.7% of the total monthly budget is spent on labor.
b. To find the percentage of the total monthly budget spent on miscellaneous items, we can follow the same approach. Divide the cost of miscellaneous items ($1,015) by the total monthly budget ($5,000) and multiply by 100.
Percentage of miscellaneous items = (Cost of miscellaneous items / Total monthly budget) * 100 = (1015 / 5000) * 100 = 20.3%
Therefore, 20.3% of the total monthly budget is spent on miscellaneous items.
c. The table states that materials cost 18% of the total monthly budget. To find the monthly cost of materials, we can use this percentage. Multiply the total monthly budget ($5,000) by the percentage of materials (18%).
Monthly cost of materials = Total monthly budget * Percentage of materials = 5000 * (18/100) = $900
Therefore, the monthly cost of materials is $900.
d. Similar to the previous question, the table states that rent and utilities cost 25% of the total monthly budget. Multiply the total monthly budget ($5,000) by the percentage of rent and utilities (25%) to find the monthly cost.
Monthly cost of rent and utilities = Total monthly budget * Percentage of rent and utilities = 5000 * (25/100) = $1250
Therefore, the monthly cost of rent and utilities is $1250.