In a certain year, the advertising expenses were 23.6 % of the total expenses. In the following year, other expenses increase 5.3 %, but the rising of the total expenses can only be 1.25 %. How many percents, in this case, must the company reduce the advertising expenses? The answer has 2 decimals
Advertising expense=23.6%
Following year Other expenses increase by 5.3%
But total expense increase by 1.25%
Let x be the total expense.
Then advertising expense =0.236x
New expense =0.0125x ,new advertising expenses ratio is;
"\\frac{0.0125x*0.236x}{x}"
=0.00295x
If 0.236x=1, 0.00295x=?
"\\frac{0.00295x*1}{0.236x}"
1.25%
Therefore advertising expenses must reduce 25%
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