Calculating Sales in 2024 based on Sales in 2025

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.
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