Question

business xyz has the following projected budget and actual budget for a given month:

	budget	actual
inventory	$13,700	$14,230
rent	$9,200	$9,970
services	$4,600	$5,600

calculate the percent change that inventory is over budget.
$\\%\delta = ?\\%$
answer as a percent rounded to the nearest tenth.

Explanation:

Step1: Find the difference between actual and budget

The formula for the difference is \( \text{Difference} = \text{Actual} - \text{Budget} \). For Inventory, Actual is $14,230 and Budget is $13,700. So, \( \text{Difference} = 14230 - 13700 = 530 \).

Step2: Calculate the percent change

The formula for percent change is \( \% \Delta=\frac{\text{Difference}}{\text{Budget}}\times100 \). Substituting the values, we get \( \% \Delta=\frac{530}{13700}\times100 \). First, calculate \( \frac{530}{13700}\approx0.038686 \), then multiply by 100: \( 0.038686\times100 = 3.8686\% \). Rounding to the nearest tenth gives \( 3.9\% \).

Answer:

\( 3.9\% \)