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?

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

To calculate the Sales Growth, we need to find the difference between the Sales Revenue Current Year and Sales Revenue Last Year, divide that difference by Sales Revenue Last Year, and then multiply by 100 to convert to a percentage:

Sales Growth = (Sales Revenue Current Year - Sales Revenue Last Year) / Sales Revenue Last Year × 100%
Sales Growth = ($150,000 - $125,000) / $125,000 × 100%
Sales Growth = $25,000 / $125,000 × 100%
Sales Growth = 0.2 × 100%
Sales Growth = 20%

Therefore, the Sales Growth is 20%.

Answer 2

The sales growth is 20%.

To calculate the sales growth, you can use the following formula:

(Sales Revenue Current Year - Sales Revenue Last Year) / Sales Revenue Last Year x 100%

Plugging in the numbers, we get:

($150,000 - $125,000) / $125,000 x 100% = 20%

Therefore, the sales growth is 20%.