Question

Sawyer Corporation's 2020 sales were 7 million. Its 2015 sales were 3.5 million. At what rate have sales been growing? Round your answer to two decimal places.

Answer 1

To calculate the growth rate, subtract the initial sales from the final sales, divide by the average sales, and multiply by 100 to get the percentage growth rate.

Step-by-step explanation:

To calculate the growth rate, we need to find the change in sales and divide it by the average sales.

First, subtract the initial sales from the final sales: 7 million - 3.5 million = 3.5 million

Then, find the average sales by adding the initial and final sales and dividing by 2: (7 million + 3.5 million) / 2 = 5.25 million

Finally, divide the change in sales by the average sales and multiply by 100 to get the percentage growth rate: (3.5 million / 5.25 million) * 100 = 66.67%