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

Solution Steps

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

First, we find the difference between the actual and budgeted amounts for Inventory: \[ \text{Difference} = \text{Actual} - \text{Budget} = 14230 - 13700 = 530 \]

Next, we calculate the percent change using the formula: \[ \% \Delta = \left( \frac{\text{Difference}}{\text{Budget}} \right) \times 100 = \left( \frac{530}{13700} \right) \times 100 \approx 3.8686 \]

Finally, we round the percent change to the nearest tenth: \[ \% \Delta \approx 3.9 \]

Final Answer