If a warehouse received 250 orders in April and 300 in May, the percentage of increase in orders from April to May was 20%.
The correct answer and explanation is :
Correct Answer: Yes, the percentage increase in orders from April to May was 20%.
Explanation:
To calculate the percentage increase in orders from April to May, you can use the following formula:
$$
\text{Percentage Increase} = \left( \frac{\text{New Value} – \text{Old Value}}{\text{Old Value}} \right) \times 100
$$
Here’s how we apply it to the given data:
- Old Value (April Orders) = 250
- New Value (May Orders) = 300
$$
\text{Percentage Increase} = \left( \frac{300 – 250}{250} \right) \times 100
$$
$$
\text{Percentage Increase} = \left( \frac{50}{250} \right) \times 100
$$
$$
\text{Percentage Increase} = 0.2 \times 100 = 20\%
$$
Step-by-Step Breakdown:
- Find the difference between the two months:
$300 – 250 = 50$ more orders in May. - Divide the difference by the original number (April):
$50 \div 250 = 0.2$ - Convert the decimal to a percentage by multiplying by 100:
$0.2 \times 100 = 20\%$
Why This Matters in Real-Life Contexts:
Understanding percentage increases helps businesses evaluate growth trends, plan for resource allocation, and make data-driven decisions. In this scenario, a 20% increase in orders from April to May may indicate higher demand, seasonal growth, or successful marketing. Management might need to prepare for increased inventory, staffing, or shipping logistics based on such data.
By knowing how to accurately calculate and interpret percentage changes, managers and employees can track performance effectively and respond to changes in customer behavior or market trends.