Question

Last year, your store had total sales of $190,000. Because of a downturn in the economy, you expect sales to decrease by 3% this year. What are your planned sales for next year?

Answer 1

$184,300

$190,000 times .97 = $184,300

Answer 2

It has been given to us that because of a downturn in the economy, you expect sales to decrease by 3% this year. Thus, the sales this year will be 3% lower than the sales of previous year which stood at $ 190,000.

Therefore, the sales this year can be calculated as:

$190000-\frac{3}{100}\times 190000=190000-5700=184300$

Therefore, the sales this year will be $ 184300.

Now, for the next year, it has not been mentioned anywhere in the question is the sales will remain as it is of if the sales will continue to dip at 3%. Thus, let us look at both the scenarios.

Scenario 1

If the sales do not go down then the sales next year will be $ 184300 too.

Scenario 2

If the sales go down further by 3%, then the sales next year will be:

$184300-\frac{3}{100}\times 184300=184300-5529=178771$

Thus, the sales next year will be $ 178771 if the downturn continues.