Question

A company's sales in Year 1 were $350,000 and in Year 2 were $387,500 Using Year 1 as the base year, the percent change for Your 2 compared to the base year is:

a)11%
b)100%
c)10%
d)12%
e)90%

Answer 1

To calculate the percent change for Year 2 compared to the base year, use the formula: Percent Change = ((New Value - Base Value)/Base Value) * 100. After plugging in the given values, the percent change is approximately 10%.

Step-by-step explanation:

To calculate the percent change for Year 2 compared to the base year, we follow this formula:

Percent Change = ((New Value - Base Value)/Base Value) * 100

In this case, the base value is the sales in Year 1, which is $350,000, and the new value is the sales in Year 2, which is $387,500. Plugging in these values, we get:

Percent Change = (($387,500 - $350,000)/$350,000) * 100

Simplifying, we get:

Percent Change ≈ 10%

Therefore, the correct answer is (c) 10%.