Twenty percent of the income is used for raw materials. If $78,000 is used for other purposes, what is the total income?

Question

Find the total income of 20% is spent on raw materials and $78000 is spent for other purposes

Answer 1

If 20% goes for raw materials, then the rest (of income) is 80%.  So 0.80 (income) = 78,000 and therefore income = 78,000 /0.80 = $97,500