Question

Bennett Distribution Company, a subsidiary of a major appliance manufacturer, is forecasting regional sales for the next year. The Atlantic branch, with current yearly sales of $193.8 million, is expected to achieve a sales growth of 7.25 percent; the Midwest branch, with current sales of $79.3 million, is expected to grow by 8.20 percent; and the Pacific branch, with sales of $57.5 million, is expected to increase sales by 7.15 percent. What is the average rate of sales growth forecasted for the next year?

Answer 1

Branch name	current yearly sales	Expected growth rate
Atlantic	193.8 million	7.25%
Midwest	79.3 million	8.20%
Pacific	57.5 million	7.15%

Average rate of sales growth

setting the data values

Average rate of sales growth

Therefore, average rate of sales growth forecasted for the next year is 7.46%