Question

Help would be appericiate as I am stuck on this question :)

Answer 1

Explanation:

Answer 2

$8000

Explanation:

The amount of the total operating expenses attributed to fuel before the increase in fuel price is: 30% of $400000. That is :
`0.3*$400000=$120000`

Now we need to find out what is the percent increase in fuel if it went from $1.50 to $1.60. We recall that to find the percent increase we need to perform the following calculation: (new price - original price)*100/original price

This gives us:
`(1.60-1.50)/(1.50) *100=(0.10)/(1.50) *100= (2)/(30) *100`% and what in just ratio form is:
`(2)/(30)`

Now, we can estimate how the $120000 fuel cost per year would be affected by such increase by multiplying the percent increase (in ratio form) we just estimated times this annual fuel cost:

Amount that will be added =
`(2)/(30) * $120000=$8000`