The chemical division’s legal expenses are between 1/3 and 1/2 of the $720,000 spent by the pharmaceutical division on legal expenses. Thus, the chemical division spends between $240,000 and $360,000 on legal expenses.
The chemical division’s legal expenses are also given to us as 15 percent of the division’s total expenses.
$240,000 < 0.15c < $360,000, where c represents the total expenses of the chemical division. Solve for c by dividing by 0.15 (remember to do so on ALL sides of the inequality): $240,000/0.15 < c < $360,000/0.15 $1,600,000 < c < $2,400,000 The only answer choice between $1.6 million and $2.4 million is $1,855,100. The correct answer is D.
Pretty close to what I said in the comments.