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 percentage 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 find the percentage change from Year 1 to Year 2 using Year 1 as the base year, we need to use the following formula:

Percentage change = (Year 2 - Year 1) / Year 1 x 100%

Using the numbers given in the problem, we get:

Percentage change = ($380,000 - $396,000) / $396,000 x 100%
                  = -$16,000 / $396,000 x 100%
                  = -0.0404 x 100%
                  = -4.04%

Note that the change is negative, which means sales decreased from Year 1 to Year 2. The absolute value of the percentage change is 4.04%, which is closest to choice D (96% decrease). However, since the question asks for the percentage change compared to the base year, we need to subtract the absolute value of the percentage change from 100% to get the correct answer:

Percentage change compared to base year = 100% - 4.04% = 95.96% or approximately 96%

Therefore, the correct answer is D.

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