Amalgamated Corporation's net income was $2,400,000 in 2014 and $800,000 in 2015.What percentage increase in net income must Amalgamated achieve in 2016 to offset the decline in profits in 2015?
A)75%.
B)300%.
C)33.33%.
D)800%.

Question

Quizplus · Accepted Answer

To offset the decline in profits in 2015, Amalgamated Corporation's net income in 2016 must be equal to its net income in 2014, which was $2,400,000.

Let x be the percentage increase in net income that Amalgamated must achieve in 2016.

Then:

$800,000 + ($800,000x) = $2,400,000

Solving for x, we get:

x = 2.

Therefore, Amalgamated Corporation must achieve a 200% increase in net income in 2016 to offset the decline in profits in 2015.

The closest option is B) 300%, so it is the best choice.

Amalgamated Corporation's Net Income Was $2,400,000 in 2014 and $800,000