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
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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