Question

The owner of a bike shop would like to analyze the sales data to determine if the business is growing, declining, or remaining flat. the owner has the following data:

sales revenue last year =$125,000

sales revenue current year = $150, 000

what is the sales growth?

click this link to open the business financials part 2 study guide to view the formula used for this problem!

do not forget to type the % symbol after multiplying your result by 100 to convert to percentage!

hint: your answer will not have decimal point.

example: 75%

Answer 1

20%

Explanation:

You want the percentage growth from $125,000 to $150,000.

Percentage change

The percentage change is found from ...

% change = ((new value)/(old value) -1) × 100%

% change = (150000/125000 -1) × 100% = (1.2 -1) × 100%

% change = 0.2 × 100% = 20%

The sales growth is 20%.

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