Many people will INCORRECTLY choose C as their answer, because they feel that a 10% increase followed by a 10% decrease will get us back to where we started. This is a common misconception.
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 =
$880,000Next, 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
Answer:
Cheers,
Brent
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Brent Hanneson - founder of Greenlight Test Prep