Danner Corporation reported net sales of $650000 $720000 and $780000 in the years 2020 2021 and 2022 respectively.If 2020 is the base year what percentage do 2022 sales represent of the base?

Question

Quizplus · Accepted Answer

To find the percentage of 2022 sales relative to the 2020 base year, we need to calculate the percentage increase from 2020 to 2022 and add that percentage to 100% (the base).

Calculating the percentage increase:

Difference between 2022 sales and 2020 sales = $780,000 - $650,000 = $130,000
Percentage increase = (130,000 / 650,000) x 100% = 20%

Adding the percentage increase to 100%:

100% + 20% = 120%

Therefore, 2022 sales represent 120% of the 2020 base year sales. The best choice is B) 120%.

Danner Corporation Reported Net Sales of $650000 $720000 and $780000