The formula to calculate the sales decrease (SD) is:
\[ SD = \frac{(IS - FS)}{IS} \times 100 \]
Where:
Sales decrease is a measure of the reduction in sales revenue over a certain period. It is expressed as a percentage and indicates how much sales have fallen compared to a previous period. This metric is crucial for businesses to understand their sales trends and to make informed decisions about marketing, production, and strategic planning.
Let's assume the following values:
Step 1: Calculate the sales decrease:
\[ SD = \frac{(1000 - 800)}{1000} \times 100 = 20 \% \]
Therefore, the sales decrease is 20%.