Question

A company's sales in Seattle were $350,000 in 2012, while their sales in Portland were $260,000 for the same year. Complete the following statements: a. Seattle's sales were % larger than Portland's. b. Portland sales were % smaller than Seattle's. c. Portland sales were % of Seattle's.

Answer 1

Seattle's sales were approximately 34.62% larger than Portland's, while Portland's were about 25.71% smaller than Seattle's and were also 74.29% of Seattle's. For the self-check question, the firm's accounting profit was $50,000.

Step-by-step explanation:

To calculate the difference in percentages between a company's sales in Seattle versus Portland, we first find the absolute difference in sales and then compare it to Portland's sales. The sales in Seattle were $350,000, and in Portland, they were $260,000.

• The absolute difference in sales between Seattle and Portland is $350,000 - $260,000 = $90,000.
• To find the percentage that Seattle's sales were larger than Portland's, we divide the difference by Portland's sales and multiply by 100: ($90,000 / $260,000) * 100 ≈ 34.62%.
• To find the percentage that Portland's sales were smaller than Seattle's, we use the same difference but compare it to Seattle's sales: ($90,000 / $350,000) * 100 ≈ 25.71%.
• Finally, to find out what percentage Portland's sales were of Seattle's, we divide Portland's sales by Seattle's sales and multiply by 100: ($260,000 / $350,000) * 100 ≈ 74.29%.

Therefore:

1. Seattle's sales were approximately 34.62% larger than Portland's.
2. Portland's sales were approximately 25.71% smaller than Seattle's.
3. Portland's sales were 74.29% of Seattle's.

For the self-check question:

The firm's accounting profit is found by subtracting all the costs from the sales revenue. So, $1,000,000 (revenue) - $600,000 (labor) - $150,000 (capital) - $200,000 (materials) equals an accounting profit of $50,000.

Answer 2

The answers are:

1. Seattle´s sales were 34.6% larger than Portland´s
2. Portland´s sales were 25.7% smaller than Seattle´s
3. Portland´s sales were 74.3% of Seattle´s

Step-by-step explanation:

To calculate answer 1 you must divide Seattle´s sales over Portland´s sales, then subtract 1, and finally multiply by 100.

= [ ($350,000/260,000) - 1 ] x 100 = 34.6%

To calculate answer 2 you must subtract the result form dividing Portland´s sales over Seattle´s sales from 1, and then multiply by 100.

= [ 1 - ($260,000/350,000) ] x 100 = 25.7%

To calculate answer 3 you must divide Portland´s sales over Seattle´s sales, and then multiply by 100.

= ($260,000/350,000) x 100 = 74.3%