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If the company's sales in year 1 were $300,000 and in year 2 were $336,000. Using year 1 as the base year, the sales trend percent for year 2 is: 12%. Since there's $36,000 difference between year 1 and year 2 sales, $36,000 can be divided by $300,000. Doing that gives a value 0.12 and multiplying it by 100 makes 12%.
Using year 1 as a base year, sales trends in year 2 are 12%.
Where 12% comes from $ 36,000 divided by $ 300,000. Use a value of only $ 36,000 because the initial value for determining trends is $ 300,000. So the remaining $ 300,000 is $ 36,000.
Further Explanation
Sales is an integrated effort to develop a strategic plan that is directed to meet the needs and desires of buyers, to get sales that generate profits.
A trend is something that allows traders and investors to benefit. Whether for the long term or the short term, in a market that moves in one direction or a limited range, the change from one price to the next is what creates profit or loss.
Four main factors will cause fluctuations in long-term or short-term trends.
1. Government
The government has a big influence on the free market. Fiscal and monetary policies have a significant effect on financial markets. By raising and lowering interest rates, governments and central banks can effectively slow down or try to accelerate economic growth in a country. This is called monetary policy.
2. International Transactions
The flow of funds between countries affects the economic strength of a country and its currency. The more money that leaves a country, the weaker the country's economy and currency. Countries that have more dominant exports, both goods, and services, will continue to bring money to their countries. This money can then be invested and can stimulate financial markets in the country.
3. Speculation and hope
Speculation and hope are inseparable parts of the financial system. Where consumers, investors, and politicians believe that the future economy results from what is done now. Expectations of future steps depend on current actions and shape current and future trends. Sentiment indicators are generally used to measure how certain groups feel the current economic conditions.
4. Supply and Demand
Supply and demand for products, currencies, and other investments create dynamic pressures on prices. Prices and interest rates change with changes in supply and demand. If something on demand and supply starts to weaken, prices will rise. If supply rises beyond current demand, prices will fall. If supply is relatively stable, prices can fluctuate up or down in line with changes in the level of demand.
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definition of Sales https://brainly.com/question/3972836
definition of Trend https://brainly.com/question/3972836
Four main factors will cause fluctuations in long-term or short-term trends https://brainly.com/question/3972836
Details
Grade: High School
Subject: Business
keywords: Sales, Trend