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Select the letter of the answer that arranges the ideas that develop each topic sentence below in their order of importance. Begin with the most important (or largest, most severe, most surprising) and continue to the least important. According to financial experts, the ideal budget allots certain amounts of money for different types of expenses.
____ Taxes, including federal and state income taxes and property taxes, should amount to 25 percent or less of one's total income.
____ Living expenses, including the cost of electricity, food, clothing, and entertainment, should not exceed 26 percent of one's income.
____ Four percent of one's budget should go for insurance, including life, health, and auto insurance.
____ Housing (either rent or mortgage payments) plus other debts, including auto loans and credit-card payments, should not exceed 30 percent of income.
____ Everyone should set aside 15 percent of his or her income for saving or investing.
Operating Profit
Operating profit is the income earned from a company's core business operations, excluding deductions of interest and taxes.
Markdown Rate
The percentage reduction from the original price of an item to its sale price.
Mark-up
Surcharging the cost price of commodities to envelop overheads and assure profits.
Springtime Shipment
Scheduled transportation of goods during the spring season, implying a specific timing for shipping operations.
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