Section: Mathematical Reasoning

53)
How many dollars were spent for Operating Expenses?

1. $4,800
2. $9,600
3. $48,000
4. $96,000
5. $960,000

There are 2 ways to do this now that we know the amount spent on labor.

First, 20% of the total expenses of $240,000 vent for labor:

0.20 x $240,000 = $48,000

OR

if you know that Labor is $96,000, and Operating Expenses is 1/2 of Labor, you could divide $96,000 / 2 = $48,000.