Question

A company has budgeted $328,000 to be used by both the marketing department and the finance department. The marketing department uses cash at the rate of $42,000 per month, which is three times the rate of the finance department. How many months until the budgeted amount is used up? Round all amounts to the nearest tenth.

Answer 1

5.9 months

Step-by-step explanation:

Market department monthly budget = $42,000

Since the finance department uses a third of the budget used by the market department, the total monthly budged for both departments is:

`B = (1+(1)/(3))*\$42,000\\B= \$56,000`

The number of months that until a budgeted amount of $328,000 is used is given by:

`n=(\$328,000)/(\$56,000) \\n=5.9\ months`

It will take 5.9 months until the budgeted amount is used up