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A small retailer is planning a 10% reduction in sales due to competition from a major...

A small retailer is planning a 10% reduction in sales due to competition from a major new department store. If last year’s sales were $500,000, what sales figure should be planned for this year?

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Answer #1

Last Year's sale = $500,000

Reduction planned this year = 10%

Therefore the sales figure to be planned for this year = {(100-10)*500000}/100

= (0.9*500000)

= $450000

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