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/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?

Relevance

a) (money spent on labor/ total money )*100%

(1,835/5000)*100%= 36.7%

The same equation is applied to the rest of the questions, but you may have different parts.

c) (money for materials/ total)*100%

(X/5000)*100% = 18%

X/5000=0.18

X= \$900

Most percentages are found by dividing the part you are interested in by the total amount and then moving the decimal point two places to the right.

If you are given a percentage and want to find the actual amount, multiply the percentage by the total amount. Remeber to convert the percentage to a decimal first, by moving the decimal point two places to the left.

a) 1835 / 5000 = 0.367 = 36.7%

b) 1015 / 5000 = 0.203 = 20.3%

c) 18% * 5000 = 0.18 * 5000 = 900

d) 25% * 5000 = 0.25 * 5000 = 1250

Source(s): Yahoo's calculator used for calculations

a. 37%, round to 40%

b. 20%

c. \$900

d. rent & utilities 1250