What percentage does the average selling price (ASP) increase when moving from $200 to $225?

Prepare for your Financial Statement Modeling Test. Utilize flashcards and multiple choice questions with detailed explanations. Ace your exam with thorough preparation!

Multiple Choice

What percentage does the average selling price (ASP) increase when moving from $200 to $225?

Explanation:
When measuring how much something increases, use the original value as the base. The percent increase = (new price − old price) ÷ old price × 100%. Here the ASP goes from 200 to 225, an increase of 25. So 25 ÷ 200 = 0.125, and 0.125 × 100% = 12.5%. So the ASP increases by 12.5%. If you divided by the new price instead, you’d get about 11.11%, but that would be a percent change relative to the new value, not the original.

When measuring how much something increases, use the original value as the base. The percent increase = (new price − old price) ÷ old price × 100%. Here the ASP goes from 200 to 225, an increase of 25. So 25 ÷ 200 = 0.125, and 0.125 × 100% = 12.5%. So the ASP increases by 12.5%. If you divided by the new price instead, you’d get about 11.11%, but that would be a percent change relative to the new value, not the original.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy