Question

Frosty Whip Inc. budgets 65 percent of its total expenses for marketing. Total expenses for the company this year are $500,000. What is the dollar amount Frosty Whip has budgeted for marketing?
I am doing a review for an upcoming finance test and I do not understand this question, someone please help?

Answer 1

65% of the total expenses is for marketing, in which 500,000 is the total.

First, change the percentage into decimal

65% = 65/100 = 0.65

Next, to find the amount budgeted for marketing, multiply the total with the decimal

0.65 x 500000 = 325000

$325000 is used for marketing

hope this helps