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Percent change from an initial to a final value depends only on those two endpoints. From Q1 to Q3, revenue increases from $120,000 to $165,000, a rise of $45,000. Compute 45,000/120,000=0.375=37.5%45{,}000 / 120{,}000 = 0.375 = 37.5\%. Option C is correct. The intermediate step (Q2) is irrelevant when asked for overall change from Q1 to Q3; avoid compounding sequential percent changes unless specifically requested. A common error is to average Q1→Q2 and Q2→Q3 percentage increases; that would not equal the net change. Another mistake is to use the wrong base (e.g., dividing by 165,000), which yields a different metric (fraction of final). Quick mental check: a 25% increase from 120k would be +30k (to 150k), and an additional 15k is half of 30k, i.e., another 12.5% of 120k; 25% + 12.5% = 37.5%. Structuring changes relative to the original baseline helps ensure you divide by the correct quantity.