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  3. A company, Chauncy Co., has an annual travel budget of $55,000. The accounting d

A company, Chauncy Co., has an annual travel budget of $55,000. The accounting d

游客2024-01-14  77
问题 A company, Chauncy Co., has an annual travel budget of $55,000. The accounting department estimates that transportation expenses Will increase 5 percent in the coming year, and nontransportation travel expenses will increase by 15 percent in the coming year. Last year, Chauncy Co. spent $19,500 on transportation-related expenses, and $35,000 on nontransportation travel expenses. If the annual travel budget does not increase this year, and if the accounting department’s estimates are correct, how far over the annual travel budget will expenses be this year?
选项 A、Expenses will not go over the budget.
B、$5O0
C、$4,225
D、$5,725
E、$60,725
答案 D
解析 The total travel expenses in the coming year will be $19,500×1.05=$20,475 and $35,000×1.15=$40,250, so $60,725 in total. $60,725 in expenses minus $55,000 in budget means excess expenses of $5,725.
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