Concept Chock Sam works in sales for a pharmaceutical compan

Concept Chock Sam works in sales for a pharmaceutical company. He can spend 23% of his budget for travel expenses. He can spend 14% for entertainment of clients He can spend 17% of his budget for advertising. Last year he had a total budget of $80,000). Last year he spent a total I of $48,000 for travel expenses, entertainment.1 and advertising, Did he stay within his budget allowance for those items?

Solution

Sam is permitted to spend 23% of the budget on travelling, 14 % for entertainment of clients, and 17 % for advertising i.e. a total of (23+14+17)% = 54 % of the budget towards these expenses. Since 54 % of        $ 80000 = $43200 and since Sam spent $ 48000, he did not stay within the budget.