Big Book - Test 2- Section 2 - Question #25

[ayman.habib13]

For this one, I found the difference between the freight income and expenditure and divided the result with the expenditure to arrive at the answer.
However, I did not really understand why I did it, if anyone could offer an alternate explanation, that would be much appreciated

[Userjnem]

I also am having issues answering this question and wasn’t sure how to get to the end result.

[HoldMyBeer]

\text{Percent of freight expenditures NOT covered by freight reimbursement income }=\\ \frac{(\ freight\ expenditures - Freight\ reimbursement\ income)}{\ freight\ expenditures} * 100

Now, we know freight expenditures =6.8% as seen from the right pie-chart and Freight Reimbursement = 4.9% as seen from left pie-char that you shared above, hence using the above equation:

\text{Percent of freight expenditures NOT covered by freight reimbursement income } =\\ \dfrac{6.8\%-4.9\%}{6.8\%} = 27.9411764706 \approx 28\%

This equation calculates the percentage of freight expenditures that are not covered by freight reimbursement income by subtracting the freight reimbursement income from the freight expenditures and then dividing that value by the total freight expenditures and multiplying it by 100. The result is a percentage value that represents the approximate percentage of freight expenditures that are not covered by freight reimbursement income.

[Userjnem]

Incredible, thank you.