Question

Danner corporation reported net sales of $650000, $720000, and $780000 in the years 2016, 2017, and 2018, respectively. if 2016 is the base year, what percentage do 2018 sales represent of the base?

Answer 1

We solve for the percentage that the sales in 2018 as a representative of the base is calculated by computing for the difference by the two amounts.
         Difference = ($78,000 - $65,000) = $13,000
Then, we divide the difference by the base value,
     = ($13,000) / ($65,000) = 0.2

Then, we multiply the calculated ratio by 100%.
 Percentage = (0.2) x 100% = 20%

Then, we add 100% to the answer.

Hence, 2018 sales represent 120% of the base sales during the year 2016.

Similarly, we can just divide the given sales on 2018 by the base sale on 2016.

ANSWER : 120%