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
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%
