Question

Assume the following sales data for a company:

2008 $1,000,000
2007 $ 900,000
2006 $ 750,000
2005 $ 500,000

If 2005 is the base year, what was the percentage increase in sales from 2005 to 2007?

Answer 1

To calculate the percentage increase in sales from 2005 to 2007, we can use the formula: (Change in Value / Initial Value) * 100. Using the provided sales data, we find that the percentage increase is approximately 121.38%.

Step-by-step explanation:

To calculate the percentage increase in sales from 2005 to 2007, we need to find the change in sales and divide it by the sales in 2005. The formula for percentage increase is:

Percentage Increase = (Change in Value / Initial Value) * 100

In this case, the initial value is the sales in 2005 and the change in value is the difference between the sales in 2007 and 2005.

Using the sales data provided, we can calculate the percentage increase as follows:

Percentage Increase = ((2007 - 2005) / 2005) * 100

Therefore, the percentage increase in sales from 2005 to 2007 is:

Percentage Increase = ((750,000 - 339,029) / 339,029) * 100

Percentage Increase ≈ 121.38%