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30 Mar 2024, 22:51
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
80% (00:51) correct
20% (00:15) wrong based on 5 sessions
History
Date
Time
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Not Attempted Yet
If the dollar amount of sales at Store P was $800,000 for 2006, what was the dollar amount of sales at that store for 2008 ?
A. $727,200
B. $792,000
C. $800,000
D. $880,000
E. $968,000
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13 Apr 2024, 00:37
Kudos
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Let's solve the question.
Store P's 2006 sales = $800,000
The table says that, from 2006 to 2007, sales INCREASED 10%
10% of $800,000 = $80,000
So, the TOTAL sales for 2007 = $800,000 + $80,000 = $880,000
Next, the table says that, from 2007 to 2008, sales DECREASED 10%
10% of $880,000 = $88,000
So, the TOTAL sales for 2008 = $880,000 - $88,000 = $792,000
Store P's 2006 sales = $800,000
The table says that, from 2006 to 2007, sales INCREASED 10%
10% of $800,000 = $80,000
So, the TOTAL sales for 2007 = $800,000 + $80,000 = $880,000
Next, the table says that, from 2007 to 2008, sales DECREASED 10%
10% of $880,000 = $88,000
So, the TOTAL sales for 2008 = $880,000 - $88,000 = $792,000
03 Aug 2024, 05:23
Kudos
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Official Explanation
According to table, if the dollar amount of sales at Store P was $800,000 for 2006, then it was 10 percent greater for 2007, which is 110 percent of that amount, or $880,000. For 2008 the amount was 90 percent of $880,000, which is $792,000.
The correct answer is Choice B, $792,000.
Note that an increase of 10 percent for one year and a decrease of 10 percent for the following year does not result in the same dollar amount as the original dollar amount, because the base that is used in computing the percents is $800,000 for the first change but $880,000 for the second change.
According to table, if the dollar amount of sales at Store P was $800,000 for 2006, then it was 10 percent greater for 2007, which is 110 percent of that amount, or $880,000. For 2008 the amount was 90 percent of $880,000, which is $792,000.
The correct answer is Choice B, $792,000.
Note that an increase of 10 percent for one year and a decrease of 10 percent for the following year does not result in the same dollar amount as the original dollar amount, because the base that is used in computing the percents is $800,000 for the first change but $880,000 for the second change.
