Question

Find the absolute change and relative change in profit from selling hardcopy textbooks when it decreased from $6.3 million in 2019 to $2 million in 2020. Please do not provide the answer, but show the calculations.

Answer 1

To calculate the absolute change, subtract the 2020 profit from the 2019 profit. For relative change, divide the absolute change by the original amount, then multiply by 100. The absolute change is $4.3 million and the relative change is 68.25%.

Step-by-step explanation:

To find both the absolute change and the relative change in profit from selling hardcopy textbooks between 2019 and 2020, we will perform two calculations.

The absolute change is calculated by subtracting the profit of 2020 from the profit of 2019:

• Absolute Change = Profit2019 - Profit2020
• Absolute Change = $6.3 million - $2 million
• Absolute Change = $4.3 million

To calculate the relative change, also known as the percent change, we divide the absolute change by the original amount (2019 profit) and then multiply by 100:

• Relative Change = (Absolute Change / Profit2019) × 100
• Relative Change = ($4.3 million / $6.3 million) × 100
• Relative Change = (0.6825) × 100
• Relative Change = 68.25%