Question

Soxx Entertainment Venue’s operational data from 2009 to 2012 is given as follows:

Years	Maintenance Expense
2009	$12,300.00
2010	$12,792.00
2011	$12,664.08
2012	$13,170.64

Based on the operational data table above, budget the maintenance expense for Soxx Entertainment Venue in 2013.

Group of answer choices

$13,038.93

$11,010.80

$14,000.00

$11,180.45

Answer 1

Answer : Correct Option is $13,038.93

Explanation :

Increase / Decrease in maintenace expenses from 2009 to 2010 = [(12792 - 12300) / 12300] * 100

= [492 / 12300] * 100

= 4%

Increase / Decrease in maintenace expenses from 2010 to 2011 = [(12664.08 - 12792) / 12792] * 100

= [-127.92 / 12792] * 100

  = (- 1%)

Increase / Decrease in maintenace expenses from 2011 to 2012 = [(13170.64 - 12664.08) / 12664.08] * 100

= [506.56 / 12664.08] * 100

  = 4%

Therefore we can see that operational data follows a trend of 1st increase by 4%, then decrease by 1% , then increase by 4% and now for 2013 it will decrease by 1%

Therefore Budget maintenance expense for Soxx Entertainment Venue in 2013. = 13170.64 - (13170.64 * 1%)

= 13038.93