One travel association claims that each US household saves an average of $X in taxes because of the tax revenue generated by leisure and business travel. Suppose there is a ratio of Y:Z between tax revenue generated by business travel and by leisure travel. How many dollars would the average US household save in taxes because of the tax revenue generated by business travel?
Q. One travel association claims that each US household saves an average of $X in taxes because of the tax revenue generated by leisure and business travel. Suppose there is a ratio of Y:Z between tax revenue generated by business travel and by leisure travel. How many dollars would the average US household save in taxes because of the tax revenue generated by business travel?
Identify Average Tax Savings: Identify the average tax savings per US household and the ratio of tax revenue between business and leisure travel. Suppose the average savings is $1000 and the ratio is 3:2.
Calculate Business Travel Portion: Calculate the portion of the $1000 that is due to business travel. Since the ratio of business to leisure travel is 3:2, business travel accounts for 53 of the total tax revenue.
Multiply Total Savings: Multiply the total savings by the fraction from business travel: $1000×53=$600.
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