“My sales volume has increased from 50 units a day to 62. That is a __ increase.”
The Correct Answer and Explanation is:
To find the correct answer, we need to calculate the increase in sales volume and express it as a percentage increase. The initial sales volume was 50 units, and the new sales volume is 62 units.
Step 1: Calculate the increase in sales volume.
[
\text{Increase} = \text{New Volume} – \text{Old Volume} = 62 – 50 = 12 \text{ units}
]
Step 2: Calculate the percentage increase.
To find the percentage increase, we use the formula:
[
\text{Percentage Increase} = \left( \frac{\text{Increase}}{\text{Old Volume}} \right) \times 100
]
Substituting the values:
[
\text{Percentage Increase} = \left( \frac{12}{50} \right) \times 100 = 24\%
]
Thus, the correct answer to fill in the blank is “24%.”
Explanation:
When analyzing changes in sales volume, understanding percentage increases is crucial for businesses. A percentage increase reflects how much a quantity has grown relative to its original amount, allowing for better comparison across different volumes or time periods. In this scenario, the sales volume increased from 50 units to 62 units, resulting in a change of 12 units.
To quantify this change, we calculated the percentage increase. This calculation involves determining the difference between the new and old values (62 – 50 = 12) and then dividing that difference by the original value (50). This division tells us how significant the change is relative to where we started. By multiplying the result by 100, we convert the decimal into a percentage, yielding a percentage increase of 24%.
A 24% increase is substantial, especially in sales, as it can indicate positive trends in customer demand, effective marketing strategies, or improved product quality. Companies often use percentage increases to gauge performance over time, set sales targets, and make informed decisions about production and inventory management. Overall, a clear understanding of percentage changes helps businesses respond strategically to market dynamics and customer needs.