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If 25% of a company's profits are allocated to ethical initiatives and the profi

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Question: If 25% of a company\'s profits are allocated to ethical initiatives and the profit is $200,000, how much is allocated?

Options:

  1. $40,000
  2. $50,000
  3. $60,000
  4. $70,000

Correct Answer: $40,000

Solution: 

25% of $200,000 is calculated as (25/100) * 200000 = $50,000.

If 25% of a company's profits are allocated to ethical initiatives and the profi

Practice Questions

Q1
If 25% of a company's profits are allocated to ethical initiatives and the profit is $200,000, how much is allocated?
  1. $40,000
  2. $50,000
  3. $60,000
  4. $70,000

Questions & Step-by-Step Solutions

If 25% of a company's profits are allocated to ethical initiatives and the profit is $200,000, how much is allocated?
  • Step 1: Understand that 25% means 25 out of every 100 parts.
  • Step 2: Convert 25% into a fraction: 25% = 25/100.
  • Step 3: Identify the total profit amount, which is $200,000.
  • Step 4: Multiply the fraction (25/100) by the total profit ($200,000).
  • Step 5: Calculate (25/100) * 200000 = 50000.
  • Step 6: Conclude that $50,000 is allocated to ethical initiatives.
  • Percentage Calculation – Understanding how to calculate a percentage of a given amount.
  • Profit Allocation – Applying a percentage to a profit figure to determine the amount allocated to a specific purpose.
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