Hart Corporation's net income was $400,000 in 2010 and $160,000 in 2011. What percentage increase in net income must Hart achieve in 2012 to offset the decline in profits in 2011?
A) 60%.
B) 150%.
C) 600%.
D) 67%.

Question

Quizplus · Accepted Answer

To offset the decline, Hart needs to return to the 2010 net income level of $400,000 from $160,000 in 2011. The increase needed is $400,000 - $160,000 = $240,000. The percentage increase required is ($240,000 / $160,000) * 100% = 150%.

Hart Corporation's Net Income Was $400,000 in 2010 and $160,000