Question

management accounting math quiz
question 3 of 10: in 2015, your company had revenue of $78,524. in 2014, revenue was $56,976. what is the growth rate of your company?
a) 25%
b) 38%
c) 45%
d) 55%
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Explanation:

Step1: Recall growth rate formula

The formula for growth rate is $Growth\ Rate=\frac{New\ Value - Old\ Value}{Old\ Value}\times100\%$. Here, the new value (2015 revenue) is $78,524$ and the old value (2014 revenue) is $56,976$.

Step2: Calculate the difference

First, find the difference between the 2015 and 2014 revenues: $78524 - 56976 = 21548$.

Step3: Apply the growth rate formula

Now, plug the values into the formula: $\frac{21548}{56976}\times100\%$. Calculate $\frac{21548}{56976}\approx0.378$, then multiply by 100% to get approximately 37.8%, which is closest to 38%.

Answer:

b) 38%