Percentage Query

[hnflynn]

Hi, I can't get my head round this. Hope someone can help.

I have a purchase budget for 7 shops which is a percentage of their net income....

SHOP BUD. INCOME BUD. PURCHASES BUDGET % 1 61,334 14,843 24.2% 2 21,975 7,032 32.0% 3 21,067 5,793 27.5% 4 29,754 7,766 26.1% 5 16,031 4,873 30.4% 6 27,659 7,053 25.5% 7 41,838 10,460 25.0% TOTAL 219,658 57,820 26.3%

So, my total budget is 26.3%.

After a week's trade, my figures look like this...

SHOP ACT. INCOME ACT. PURCHASES ACTUAL % 1 54,425 13,155 24.2% 2 34,600 11,079 32.0% 3 17,100 4,698 27.5% 4 24,750 6,466 26.1% 5 15,250 4,634 30.4% 6 24,000 6,129 25.5% 7 36,250 9,076 25.0% TOTAL 206,375 55,237 26.8%

All the shops have met their budget percentage, but my total has shot up to 26.8%. Why is this so?

Thanks​

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[JeffM]

Hi, I can't get my head round this. Hope someone can help.

I have a purchase budget for 7 shops which is a percentage of their net income....

SHOP BUD. INCOME BUD. PURCHASES BUDGET % 1 61,334 14,843 24.2% 2 21,975 7,032 32.0% 3 21,067 5,793 27.5% 4 29,754 7,766 26.1% 5 16,031 4,873 30.4% 6 27,659 7,053 25.5% 7 41,838 10,460 25.0% TOTAL 219,658 57,820 26.3%

So, my total budget is 26.3%.

After a week's trade, my figures look like this...

SHOP ACT. INCOME ACT. PURCHASES ACTUAL % 1 54,425 13,155 24.2% 2 34,600 11,079 32.0% 3 17,100 4,698 27.5% 4 24,750 6,466 26.1% 5 15,250 4,634 30.4% 6 24,000 6,129 25.5% 7 36,250 9,076 25.0% TOTAL 206,375 55,237 26.8%

All the shops have met their budget percentage, but my total has shot up to 26.8%. Why is this so?

Thanks​

​

Your budgeted purchases are the resultant of TWO things. The budgeted incomes and the budgeted percentage, right?

You multiplied percentage times income to get purchases by store and then added up budgeted incomes and budgeted purchases by store to calculate overall income, purchases, and percentage.

Yes, the actual percentages are equal to what was budgeted, but the actual incomes are NOT equal to what was budgeted. So when you put different numbers into a calculation, there is no reason in the world why the answer should come out the same.