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PROBLEM :5.

A)1:

% change in sales from 1999 6.24% increase


to 2000
% change in sales from 2000 3.6% increase
to 2001

2:
% change in sales per square foot of selling space;
From 1999 to 2000 7.7% increase
From 2000 to 2001 4.2% increase

3:
% change in comparable store sales
From 1999 to 2000 2.6% decrease
From 2000 to 2001 2.6% decrease

B)The overall sales of store is increasing but its overall


performance is decreasing. Because sales are increasing at a
decreasing rate. Also the change in sales of comparable stores
is constant. These figures shows that the progress in sales of
stores has stopped or decreasing. Because sales are increasing
at decreasing rate so it is possible that it may reach zero%
increase and eventually decrease in sales. So the management
should take necessary precautions to increase sales at
increasing rate.

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