Question

Gifts R Us is a gift shop in Victoria, British Columbia. Last year, 22% of its revenue came from clothing sales, 15% came from food items, 32% came from novelty items and the rest came from magazines and books. During the past year the business experienced a 5% increase in clothing sales, a 2% increase in food items, a 9% drop in novelty items and a 2% drop in magazine and book sales. The average percent change in revenue during the past year was _____%. Don't forget to include the negative (-) sign if the per cent change was negative.

Answer 1

Solution:-

Here is the comparison table which indicates the changes in revenues

Particulars    Last Year Changes   

Clothing sales 22 % + 5%

Food items sales 15% +2%

Novelty Items 32% -9%   

Magazines and books 31% (bal. fig ) -2%   

Suppose last year total revenues = $ 100

Particulars    Last Year Last year sales Changes Past Year sales

Clothing sales    22 % 22 + 5% 22*105 % = 23.1

Food items sales    15% 15 +2% 15*102% = 15.3

Novelty Items    32% 32 -9%    32*91% = 29.12

Magazines and books    31% (bal. fig ) 31 -2% 31*98% = 30.38

Total sales for the past year = $ ( 23.1 + 15.3 + 29.12 + 30.38 ) = $ 97.9

Average percent change in revenue during the past year was = (97.9 - 100) /100 = -2.1 %