To find the percentage contribution of the insurance expense relative to the total annual expenses, follow these steps:
1. Calculate the total annual expenses: Add up all the individual expenses listed in the table.
[tex]\[
\text{Total Annual Expenses} = \$ 129,874 + \$ 6,761 + \$ 87,369 + \$ 21,222 + \$ 3,789 + \$ 4,230 + \$ 7,000
\][/tex]
Adding these together, we get:
[tex]\[
\$ 129,874 + \$ 6,761 + \$ 87,369 + \$ 21,222 + \$ 3,789 + \$ 4,230 + \$ 7,000 = \$ 260,245
\][/tex]
2. Determine the insurance expense as a percentage of the total annual expenses: Divide the insurance expense by the total annual expenses and multiply by 100 to convert it to a percentage.
[tex]\[
\text{Insurance Contribution} = \left( \frac{\$ 3,789}{\$ 260,245} \right) \times 100
\][/tex]
This computes to:
[tex]\[
\left( \frac{3,789}{260,245} \right) \times 100 \approx 1.4559357528482775\%
\][/tex]
3. Round the percentage to the nearest whole number:
[tex]\[
1.4559357528482775\% \approx 1\%
\][/tex]
Therefore, the insurance expense contributes approximately 1% to the total annual expenses when rounded to the nearest whole percent.
