Question

Yeats corporation's sales in year 1 were $396,000 and in year 2 were $380,160. using year 1 as the base year, the percent change for year 2 compared to the base year is:

a)−104.0% b)100.0% c)−4.0% d)96.0% e)4.2%.

Answer 1

The percent change for Year 2 compared to the base year (Year 1) is -4.0%.

Step-by-step explanation:

The percent change for Year 2 compared to the base year (Year 1) can be calculated using the formula:

Percent change = [(Year 2 sales - Year 1 sales) / Year 1 sales] * 100%.

Plugging in the values, we get:

Percent change = [($380,160 - $396,000) / $396,000] * 100%.

Simplifying the equation, we get:

Percent change = (-$15,840 / $396,000) * 100%.

Percent change = -4.0%.

Therefore, the percent change for Year 2 compared to the base year is -4.0% (option c).