Question

Ash company report sales of $430,000 for year 1, $480,000 for year 2 and $530000 for year 3. Using year 1 as the base year, what is the revenue trend percent for years 2 and 3?

Answer 1

12% increase

Explanation:

Each year the sales increase by $50,000.

430,000 + 50,000 = 480,000

480,000 + 50,000 = 530,000

To find the percent change, write a proportion using 2 of the years.

`(480,000)/(430,000)=(x)/(100)`

To solve for x, cross multiply the numerator with the denominator of each fraction.

480,000(100) = 430,000(x)

48,000,000 = 430,000x

111.62 = x

Rounded this is 112% or 12% above 100%.