The formula to calculate the sales growth rate is:
\[ \text{SGP} = \left(\frac{\text{CP} - \text{PP}}{\text{PP}}\right) \times 100 \]
Where:
Sales growth is a measure of the rate of increase or decrease in sales displayed as a percentage of the total prior sales compared to the current sales. This sales growth rate is normally displayed as a percentage, but it can also be displayed as a simple absolute increase, which is calculated by subtracting the prior sales from the current sales.
Let's assume the following:
Step 1: Calculate the sales growth percentage:
\[ \text{SGP} = \left(\frac{120,000 - 100,000}{100,000}\right) \times 100 = 20\% \]
Therefore, the sales growth percentage is 20%.
