Question 319056: if the tax bill for this year was 20000 which was an increase of 25% from last year, how much was paid out on expenses last year?
Last year 25% was spent on taxation and 12.5% on expenses
This year 25% was spent on taxation and 10% on expenses
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! Last year 25% of revenue was spent on taxes and 12.5% of revenue was spent on expenses.
This year taxes were $20,000 which was a 25% increase over last year.
This means that last year taxes were $20,000 / 1.25 = $16,000.
Since 25% of revenue was spent on taxes, this means that Revenue last year had to be $16,000 / .25 = $64,000
Since 12.5% of revenue was spent on expenses, this means that Expenses last year had to be $64,000 * .125 = $8,000
Figures for last year are:
Revenue was $64,000
Taxes were $16,000
Expenses were $8,000
16/64 = .25 = 25% of revenue was for taxes.
8/64 = .125 = 12.5% of revenue was for expenses.
Answer to your question is $8,000
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