Question

A company's sales in Year 1 were $250,000 and in Year 2 were $287,500. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is:

-115%,
-100%.
-15%.
-13%.
-87%.

Answer 1

The percent change in sales from Year 1 to Year 2 is a positive 15%, which indicates an increase in sales.

Step-by-step explanation:

The percent change for Year 2 compared to the base year can be calculated as follows:

Percent Change = ((Year 2 Sales - Year 1 Sales) / Year 1 Sales) * 100

where Year 2 Sales = $287,500 and Year 1 Sales = $250,000.

Therefore, Percent Change = (($287,500 - $250,000) / $250,000) * 100

Percent Change = ($37,500 / $250,000) * 100

Percent Change = 0.15 * 100

Percent Change = 15%

The percent change is a positive 15%, indicating an increase in sales from the base year.