Question

Lynn's Lumber Yard had annual sales of $1,125,900. If the total operating expenses were $513,600, how would the total operating expenses be represented in a percentanalysis?42%44%46%48%None of these choices are correct.

Answer 1

We want to represent the total operating expenses as a percentage of the annual sales. Recall, percentage is expressed in terms of 100. Thus, we have

percentage = total operating expenses/annual sales x 100

Percentage = 513600/1125900 x 100 = 45.617

Rounding to the nearest whole number,

percentage = 46%