Question

The monthly cost of running a small business consists of retail space rental at $2400,
wages at $1800 and utilities at $480. If the retail space rental and wages are decreased

by 5% and 6% respectively, while utilities are increased by 7%, find the percentage increase or decrease in monthly cost of running the buissenes
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Answer 1

Answer:

The monthly cost of running a small business consists of retail space rental at $2400, wages at $1800 and utilities at $480.

$total \: = 2400 + 1800 + 480 \\ = 4680$

If the retail space rental and wages are decreased

by 5% and 6% respectively, while utilities are increased by 7%,

Then,

$2400 \times \frac{100 - 5}{100} + 1800 \times \frac{100 - 6}{100} \\ + 480 \times \frac{100 + 7}{100} \\ = 2400 \times \frac{95}{100} + 1800 \times \frac{94}{100} \\ + 480 \times \frac{10 7}{100} \\ = 2280 + 1692 + 513.6 = 4485.60$

Percentage decreased

$\frac{4680 - 4485.60}{4680} \times 100 \\ = \frac{194.4 }{4680} \times 100 = 4.154 \: \%$