Question

1. Calculate the growth rate between 2010 and 2014 for a company with the following revenue. Year Revenue 2010 735 2011 985 2012 1152 2013 1347 2014 1658 2015 1895

Answer 1

Answer:  230.75 (units/ year)

Explanation:

To compute the growth rate between 2010 and 2014, we use the following formula :

Growth rate = [(Revenue in 2014) -(Revenue in 2010)]÷ [Difference between 2010 and 2014]

From the table, Revenue in 2010 = 735

Revenue in 2014= 1658

Then, Growth rate = (1658 -735)÷ (2014-2010)

= 923÷  4

= 230.75

Hence, the growth rate between 2010 and 2014 =  230.75 (units/ year)