Question

A major department store chain has average sales of $1,340,000 per day. Its shrinkage rate is 0.5%. What will it's losses be for an entire year? (Assume 365 days per year.)

Answer 1

We are given:

Average sales of a major department store chain per day
`=1,340,000`

Number of days in a year
`=365`

Therefore, the total sales of one year
`1,340,000 * 365 =489,100,000`

The shrinkage rate is 0.5%

Therefore, the losses for an entire year
`=0.5\% * 489,100,000`

`=0.005 * 489,100,000`

`=2,445,500`

Hence, its looses for an entire year is $2,445,500