A warehouse received 250 orders in April, and 300 orders in May. What was the percentage of increase in orders from April to May?
The correct answer and explanation is:
Correct Answer:
The percentage increase in orders from April to May is: Percentage Increase=(New Value−Old ValueOld Value)×100\text{Percentage Increase} = \left(\frac{\text{New Value} – \text{Old Value}}{\text{Old Value}}\right) \times 100 =(300−250250)×100=(50250)×100=0.2×100=20%= \left(\frac{300 – 250}{250}\right) \times 100 = \left(\frac{50}{250}\right) \times 100 = 0.2 \times 100 = \boxed{20\%}
300-Word Explanation:
Understanding percentage change is a key concept in both business and everyday decision-making. In this case, a warehouse received 250 orders in April and 300 orders in May. To find out how much the number of orders increased in relative terms, we calculate the percentage increase.
The percentage increase shows the proportion of growth relative to the original value (April’s orders). The formula used is: (IncreaseOriginal Value)×100\left(\frac{\text{Increase}}{\text{Original Value}}\right) \times 100
Here, the increase in orders is: 300−250=50300 – 250 = 50
And the original value (starting point) is 250 (April’s orders). So the calculation becomes: (50250)×100=20%\left(\frac{50}{250}\right) \times 100 = 20\%
This means that from April to May, the number of orders increased by 20%. It’s important to note that we divide by the original number (250), not the new number (300). This is because we’re measuring how much growth occurred relative to the starting point, not the endpoint.
Using percentage change helps businesses track growth or decline efficiently. For example, a 20% increase could indicate improved marketing, seasonal demand, or greater customer satisfaction. It allows for quick comparisons over time or between departments, regardless of the scale.
Understanding and applying such a concept is vital for warehouse managers, analysts, or business owners looking to optimize operations, set goals, or assess performance trends. In summary, the warehouse saw a 20% increase in orders from April to May.