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 sales trend percent for year 2 is: group of answer choices

a. 87%.
b. 100%.
c. 115%.
d. 15%.
e. 13%.

Answer 1

The correct answer is option d. To find the sales trend percent for year 2 using year 1 as the base year, one must calculate the percentage increase in sales from year 1 to year 2. The increase ($37,500) divided by the year 1 sales ($250,000) and then multiplied by 100 gives a sales trend percent of 15% for year 2.

Step-by-step explanation:

To calculate the sales trend percent for year 2 using year 1 as the base year, you need to compare the sales of year 2 to the sales of year 1 and then convert that to a percentage. This requires the following steps:

1. Subtract the sales of the base year (year 1) from the sales of year 2 to find the increase in sales.
2. Divide the increase by the sales of the base year (year 1).
3. Multiply by 100 to convert it to a percentage.

Using the numbers given, the calculation would be as follows:

• Year 1 sales: $250,000
• Year 2 sales: $287,500
• Increase in sales: $287,500 - $250,000 = $37,500
• Sales trend percent: ($37,500 / $250,000) × 100 = 15%

We take the increase of $37,500, divide by the base year's sales of $250,000, and then multiply by 100 to get the sales trend percent. Hence, the correct answer to the sales trend percent for year 2 is 15%, which is option d.