sales of an industry Rose from 23 million to 27 million while the industry's price index rose from 175 to 200. compute the percentage change in actual rupees sales and sales in constant rupees
To compute the percentage change in actual rupee sales, we can use the formula:
Percentage Change = ((New Value - Old Value) / Old Value) * 100
In this case, the old value of sales is 23 million and the new value is 27 million.
Percentage Change in Actual Rupee Sales = ((27,000,000 - 23,000,000) / 23,000,000) * 100 = (4,000,000 / 23,000,000) * 100 = 17.39%
To compute the sales in constant rupees, we can use the following formula:
Sales in Constant Rupees = (Actual Sales / Price Index) * 100
The actual sales are 27 million and the price index is 200.
Sales in Constant Rupees = (27,000,000 / 200) * 100 = 135,000,000 / 2 = 135,000,000
So, the sales in constant rupees is 135 million.