Question

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

Hint:

Be aware that a percentage increase followed by a decrease of the same percentage does not return you to the original value. The second percentage change is calculated on the new, larger amount, resulting in a net decrease from the original value.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
This question requires external data, typically from a chart or graph, which is not provided. The data would show the percentage change in sales from year to year. To arrive at the given answer of $792,000, we must assume a logical sequence of percentage changes based on common test question patterns. A common pattern is a percentage increase followed by a percentage decrease of the same value.
Step 2: Assumed Data and Approach:
Let's assume the missing data indicates:

A 10% increase in sales from 2006 to 2007.
A 10% decrease in sales from 2007 to 2008.
We will calculate the sales for 2007 and then use that value to find the sales for 2008.
Step 3: Detailed Explanation:
Step 3a: Calculate sales for 2007.
Sales in 2006 = $800,000.
Assuming a 10% increase:
\[ \text{Increase} = 10% \text{ of } $800,000 = 0.10 \times 800,000 = $80,000 \] \[ \text{Sales in 2007} = $800,000 + $80,000 = $880,000 \] Step 3b: Calculate sales for 2008.
Sales in 2007 = $880,000.
Assuming a 10% decrease from the 2007 amount:
\[ \text{Decrease} = 10% \text{ of } $880,000 = 0.10 \times 880,000 = $88,000 \] \[ \text{Sales in 2008} = $880,000 - $88,000 = $792,000 \] Step 4: Final Answer:
Based on the assumed percentage changes (a 10% increase followed by a 10% decrease), the dollar amount of sales for 2008 is $792,000. This matches the provided answer.