Business Math 2

Question

Joint-Serve Prosthetics spends 43% of its total expenses for payroll. It increased its total expenses when it spent $250,000 for robotic assemblers. This changed the allocation for payroll to 38% of total expenses. What were its total expenses after purchasing the robotic assemblers? Hint: First find the total expense before the purchase of robotic assemblers.

Answer 1

Translating the words into a mathematical formula can be a challenge. Take it one step at time.

43% of total expenses is payroll so, .43E = P where E = Expenses and P =Payroll

If expenses are increased by $250,000 you have E + 250000

The new payroll allocation is 38% so    .38(E + 250000) = P

Do you know what to do next?

David