Question

Ash company reported sales of $410,000 for year 1, $460,000 for year 2, and $510,000 for year 3. using year 1 as the base year, what were the percentage increases for year 2 and year 3 compared to the base year

Answer 1

Percentage change can be determined by dividing the change by the quantity of the base year. The base year here is year 1, so we use the value of $410,000 as base price.

Year 2:
Percentage change = ($460,000-$410,000)/$410,000*100 = 12.2%

Year 3:
Percentage change = ($510,000-$410,000)/$410,000*100 = 24.4%

The percentage change increased doubly.