Question

Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000.Using Year 1 as the base year,the percent change for Year 2 compared to the base year is:_________.A) −104%B) 100%C) −4.0D) 96%E) 4.2%

Answer 1

The correct option is C) −4.0%.

Step-by-step explanation:

Since Year 1 is said to be used as the base year, the percentage change can bee calculated using the following formula:

Percent change = ((Sales in Year 2 - Sales in Year 1) / Sales in Year 1) * 100 ........... (1)

Where;

Sales in Year 1 = $396,000

Sales in Year 2 = $380,000

Substituting the values into equation (1), we have:

Percent change = (($380,000 - $396,000) / $396,000) * 100

Percent change = (−$16,000 / $396,000) * 100

Percent change = −0.0404040404040404 * 100

Percent change = −4.04040404040404%

Approximating to one decimal place, we have:

Percent change = −4.0%

Therefore, the percent change for Year 2 compared to the base year is -4.0% and the correct option is C) −4.0%.