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If a company’s revenue increases from $500,000 to $600,000, what is the percenta

Practice Questions

Q1
If a company’s revenue increases from $500,000 to $600,000, what is the percentage increase in revenue?
  1. 20%
  2. 25%
  3. 15%
  4. 10%

Questions & Step-by-Step Solutions

If a company’s revenue increases from $500,000 to $600,000, what is the percentage increase in revenue?
  • Step 1: Identify the old revenue, which is $500,000.
  • Step 2: Identify the new revenue, which is $600,000.
  • Step 3: Subtract the old revenue from the new revenue: 600,000 - 500,000.
  • Step 4: Calculate the difference: 600,000 - 500,000 = 100,000.
  • Step 5: Divide the difference by the old revenue: 100,000 / 500,000.
  • Step 6: Calculate the division: 100,000 / 500,000 = 0.2.
  • Step 7: Multiply the result by 100 to get the percentage: 0.2 * 100.
  • Step 8: Calculate the final percentage: 0.2 * 100 = 20%.
  • Percentage Increase – The calculation of how much a value has increased in relation to its original value, expressed as a percentage.
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