Question:
If sales are $1,150,000 in 2025 and this represents a 15% increase over sales in 2024, what were sales in 2024?
Answer:
To find the sales in 2024 based on the sales in 2025 and the percentage increase, we can use the formula:
Sales in 2024 = Sales in 2025 / (1 + %)
Given that the sales in 2025 is $1,150,000 and there was a 15% increase over the sales in 2024:
Sales in 2024 = $1,150,000 / (1 + 0.15)
Sales in 2024 = $1,150,000 / 1.15
Sales in 2024 = $1,000,000
Therefore, the sales in 2024 were $1,000,000.
This indicates that there was growth in sales from 2024 to 2025, which is a positive sign for businesses as it often indicates increased profitability. It is important for companies to analyze sales data to understand trends and make informed decisions for the future.