Select the correct answer from each drop-down menu. Last year, sales at a bookstore increased from $5,000 to $10,000. This year, sales decreased to $5,000 from $10,000. What percentage did sales increase last year? What percentage did sales decrease this year? Sales increased last year, from $5,000 to $10,000. When sales dropped from $10,000 to $5,000 this year, sales decreased
Answer (2)
Calculate the sales increase last year: 10,000 - 5,000 = $5,000 .
Determine the percentage increase last year: 5 , 000 5 , 000 × 100% = 100% .
Calculate the sales decrease this year: 10,000 - 5,000 = $5,000 .
Determine the percentage decrease this year: 10 , 000 5 , 000 × 100% = 50% . The sales increased by 100% last year and decreased by 50% this year.
Explanation
Analyzing the Problem Let's analyze the sales data for the bookstore. Last year, sales increased from $5,000 to $10,000. This year, sales decreased from $10,000 back to $5,000. We need to calculate the percentage increase in sales last year and the percentage decrease in sales this year.
Calculating Percentage Increase To find the percentage increase last year, we first calculate the amount of the increase: $10,000 - $5,000 = 5 , 000. T h e n , w e d i v i d e t h e in cre a se b y t h eor i g ina l am o u n t an d m u lt i pl y b y 100 5000 5000 × 100% = 1 × 100% = 100% $. So, the sales increased by 100% last year.
Calculating Percentage Decrease To find the percentage decrease this year, we first calculate the amount of the decrease: $10,000 - $5,000 = 5 , 000. T h e n , w e d i v i d e t h e d ecre a se b y t h eor i g ina l am o u n t ( t hi sye a r ′ ss t a r t in g s a l es ) an d m u lt i pl y b y 100 10000 5000 × 100% = 0.5 × 100% = 50% $. So, the sales decreased by 50% this year.
Final Answer Therefore, sales increased by 100% last year, and sales decreased by 50% this year.
Examples
Understanding percentage changes is crucial in many real-life situations. For example, if you invest $1,000 in the stock market and it increases by 50% one year, you'd have $1,500. If the following year it decreases by 50%, you'd have $750. This illustrates how increases and decreases affect your investments and highlights the importance of understanding percentage changes in financial planning.
Sales increased by 100% last year and decreased by 50% this year, calculated by comparing the original and final sales figures. The percentage increase was calculated by finding the difference and dividing by the original amount, followed by the percentage decrease using the same method. Overall, understanding these percentage changes is important for assessing business performance.
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