If a store forecasts $365,000 in retail sales and allocates 16% to woods, what is the dollar allocation to woods?

If a store forecasts $365,000 in retail sales and allocates 16% to woods, what is the dollar allocation to woods?

• A. 60,000
• B. 35,040
• C. 58,400
• D. 50,000

Answer: (C)

The essential idea is to convert the percentage to a decimal and multiply by the total forecast to get the dollar amount. Convert 16% to 0.16 and multiply by 365,000: 365,000 × 0.16 = 58,400. So the woods allocation is 58,400 dollars. For a quick check, 16% is 1% more than 15%; 15% of 365,000 is 54,750, plus 3,650 (1%), totals 58,400.

The essential idea is to convert the percentage to a decimal and multiply by the total forecast to get the dollar amount. Convert 16% to 0.16 and multiply by 365,000: 365,000 × 0.16 = 58,400. So the woods allocation is 58,400 dollars. For a quick check, 16% is 1% more than 15%; 15% of 365,000 is 54,750, plus 3,650 (1%), totals 58,400.