A pie chart displays the breakdown of a company's total annual expenses by category: 'Salaries' (45%), 'Rent' (20%), 'Utilities' (10%), 'Marketing' (15%), and 'Other' (10%). If the total annual expenses are $2 million, and the company plans to reduce 'Marketing' expenses by 20% next year, what will be the 'Marketing' expense for next year?
✓ Correct Answer: Option A
Current Marketing expenses = 15% of $2,000,000 = $300,000. A 20% reduction means the new expense will be 80% of the current: $300,000 * 0.80 = $240,000.