Question

12de2 ecad fall 2025 - q2 - financial math - s2
mester a
comparing business budgets
this table shows the budgets of three businesses.

category	business a	business b	business c
expenses	$90,000	$110,000	$100,000
profit	$30,000	$40,000	$50,000
marketing	$10,000	$15,000	$12,500

which business spends the largest portion of its profits on marketing?

• business b spends the largest portion.
• business a and business c spend the same portion.
• business a spends the largest portion.
• business c spends the largest portion.

Explanation:

Step1: Calculate Marketing/Profit for A

To find the portion of profit spent on marketing for Business A, we divide the marketing budget by the profit. So, for Business A, the calculation is $\frac{10000}{30000} = \frac{1}{3} \approx 0.333$.

Step2: Calculate Marketing/Profit for B

For Business B, we do the same: $\frac{15000}{40000} = \frac{3}{8} = 0.375$.

Step3: Calculate Marketing/Profit for C

For Business C: $\frac{12500}{50000} = \frac{1}{4} = 0.25$.

Step4: Compare the portions

Now we compare the three values: $0.375$ (Business B), $0.333$ (Business A), and $0.25$ (Business C). We can see that $0.375$ is the largest.

Answer:

Business B spends the largest portion.