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A production manager wants to assess the growth in the purchases over the past four months for a company. They have recorded the following data in an Excel spreadsheet:Month        PurchasesOctober      2000November  2500December   3780January      1200______ is the growth rate in Jan month

Question

A production manager wants to assess the growth in the purchases over the past four months for a company. They have recorded the following data in an Excel spreadsheet:Month        PurchasesOctober      2000November  2500December   3780January      1200______ is the growth rate in Jan month

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Solution

To calculate the growth rate for January, we need to know the purchases of the previous month (December). The formula for growth rate is:

Growth Rate = (Present Month's Purchases - Previous Month's Purchases) / Previous Month's Purchases * 100%

Substituting the given values:

Growth Rate = (1200 - 3780) / 3780 * 100%

This gives us a negative growth rate, indicating a decrease in purchases in January compared to December.

Let's calculate it:

Growth Rate = -2580 / 3780 * 100% = -68.25%

So, the growth rate in January is -68.25%. This means the purchases have decreased by 68.25% from December to January.

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