A company accountant estimates that airfare next year for business trips of a thounsand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were §9,900 and airfares for all other business trips were §13.000. According to the accountant's estimate, if the same business trips will be made next year as this year, how much will be spent for airfares next year?
(A) $22,930
(B) $26,180
(C) $26,330
(D) $26,490
(E) $29,770
Subscribe to:
Post Comments (Atom)
1 comment:
The base for our calculation is what was spent in airfares this year, $13.000+$9.900 = $22.900. As the total number of trips will be maintained, we just need to check the airfare value increase in each of the classes:
- 100 miles or less: expenses increase 20%($9.900) = 2x[10%(9.900)] = 2x$990 = 1800 + 180 = $1980
- all other: expenses increase 10%($13.000) = $1.300
The total expense estimate for next year will then be 22.900 + 1980 + 1300 = $26.180 (or faster *.*80), yielding the correct answer (B)
* stands for a "d'ont care" digit
Post a Comment