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%
D)96%
E)4.2%

Question

Quizplus · Accepted Answer

To calculate the percent change, we use the following formula:

Percent change = [(Year 2 - Year 1)/Year 1] x 100%

Plugging in the values, we get:

Percent change = [(380,000 - 396,000)/396,000] x 100%
Percent change = [-16,000/396,000] x 100%
Percent change = -0.0404 x 100%
Percent change = -4.04%

Therefore, the percent change for Year 2 compared to the base year is -4%. The answer is option C.

Yeats Corporation's Sales in Year 1 Were $396,000 and in Year