Okay, here we have this:
We are going to use the following formula to calculate the percent change:
[tex]Percentchange=\frac{(V_2-V_1)}{|V_1|}\cdot100[/tex]
So, replacing we obtain:
[tex]\begin{gathered} =\frac{(12200-12700)}{|12700|}\cdot100 \\ =\frac{-500}{12700}\cdot100 \\ =-0.0393701\times100 \\ =-3.93701\text{ }change \\ =3.93701\text{ decrease} \end{gathered}[/tex]
So, according with this we rounded to the nearest tenth we obtain that the percent change that inventory is under budget is %3.9.
