To calculate the drop in sales (\(DS\)):
\[ DS = \left( \frac{PS - CS}{PS} \right) \times 100 \]
Where:
A drop in sales is a measure of the percentage of decline in sales from one period to another. The percentage is a ratio of the change in sales to the previous sales revenue.
Let's assume the following values:
Using the formula:
\[ DS = \left( \frac{500,000 - 400,000}{500,000} \right) \times 100 = 20\% \]
The drop in sales is 20%.
Let's assume the following values:
Using the formula:
\[ DS = \left( \frac{1,000,000 - 750,000}{1,000,000} \right) \times 100 = 25\% \]
The drop in sales is 25%.