Questions: Business XYZ has the following projected budget and actual budget for a given month: - Budget and Actual: - Payroll: 27,500 and 29,760 - Inventory: 13,700 and 14,230 - Rent: 9,200 and 9,970 - Services: 4,600 and 5,600 Calculate the percent change that Services are over budget. % Δ=[?] %

Solution Steps

To calculate the percent change that Services are over budget, we need to find the difference between the actual and budgeted amounts for Services, divide that difference by the budgeted amount, and then multiply by 100 to convert it to a percentage. Finally, round the result to the nearest tenth.

First, we find the difference between the actual and budgeted amounts for Services: \[ \text{Difference} = \text{Actual} - \text{Budget} = 5600 - 4600 = 1000 \]

Next, we calculate the percent change using the formula: \[ \% \Delta = \left( \frac{\text{Difference}}{\text{Budget}} \right) \times 100 = \left( \frac{1000}{4600} \right) \times 100 \] Calculating this gives: \[ \% \Delta \approx 21.73913043478261 \]

Finally, we round the percent change to the nearest tenth: \[ \% \Delta \approx 21.7 \]

Final Answer