If a company wants to save \$21,600 over the course of a year to increase its net sales, how much money must it save each month?

• A. \$1,800
• B. \$2,100
• C. \$1,200
• D. \$1,600

Answer: (A)

Verified step by step guidance

1. Step 1: Identify the total amount the company wants to save over the year, which is \$21,600.
2. Step 2: Determine the number of months in a year, which is 12 months.
3. Step 3: Use the formula for monthly savings: \( \text{Monthly Savings} = \frac{\text{Total Annual Savings}}{\text{Number of Months}} \).
4. Step 4: Substitute the values into the formula: \( \text{Monthly Savings} = \frac{21600}{12} \).
5. Step 5: Perform the division to calculate the monthly savings amount (this step is left for the student to complete).