Question

The table gives the income and expenses of a small company for one year.



Amount ($)
Income 84,000
Expenses 86,400


Use the expression I−E12 where I represents the total income and E represents the total expenses, to find the average difference between the company's income and expenses each month.

Answer 1

The difference between the income and expenses made by a company per month can be obtained by dividing the difference between the company's income and expenses throughout the year by 12. Hence, monthly difference is -$200

Given the Parameters :

• Annual income, I = $84000
• Expenses, E = $86,400

Using the Expression :

• (I - E) / 12

Difference = ($84000 - $86400) = - $2400

Average monthly difference = (Difference ÷ 12)

Average monthly difference = -$2400/12 = -$200

Therefore, the company's monthly difference is -$200

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