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The pie chart shows the percentage distribution of the Walker family’s annual income across various spending categories and savings.
From each drop-down menu, select the option that creates the most accurate statement based on the information provided.
If the expenditure on apparel exceeds the expenditure on transportation by $2,400, then the Walker family’s total annual income is .
If the Walkers were able to save 10% of the amount currently spent on food, the percentage increase in their savings would be .
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Drop-down 1:
The difference between expenditures on apparel (11%) and transportation (8%) is 3 percentage points. Since this 3% corresponds to $2,400, it follows that 1% of the annual income is $800. Therefore, the total annual income is $80,000.
Drop-down 2:
Food accounts for 24% of the annual income. Saving 10% of this amount means saving 2.4% of the income. Since the original savings is 12%, the increase is 2.4% over 12%, which is (2.4% / 12%) * 100% = 20% increase in savings.