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A bakery's revenue increased by 20 percent from 2022 to 2023, then decreased by 10 percent from 2023 to 2024, ending at $129,600. What was the bakery's revenue in 2022?
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Correct answer
C
The two changes compose multiplicatively: 1.20 × 0.90 = 1.08. So 2022 revenue × 1.08 = $129,600, giving $129,600 ÷ 1.08 = $120,000.
Check: $120,000 × 1.2 = $144,000, then × 0.9 = $129,600. The percent changes do not net to a flat +10 percent on a single base, and they must be divided out, not multiplied. (D) multiplies forward; (A) and (E) each reverse only one of the two changes.
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