Suppose That a Company's Annual Sales Were $1,200,000 in 1999

question 82

Multiple Choice

Suppose that a company's annual sales were $1,200,000 in 1999.The annual growth rate of sales from 1999 to 2000 was 16 percent,from 2000 to 2001 it was -5 percent,and from 2001 to 2002 it was 22 percent.
The geometric mean growth rate of sales over this three-year period is calculated as 10.37 percent.Use the geometric mean growth rate and determine the forecasted sales for 2004.

• A)1,780,678
• B)1,200,014
• C)1,965,337
• D)1,613,371
• E)1,422,197

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Definitions:

Dormant

In a state of temporary inactivity or rest, with the potential to reactivate or wake.

Microclimate

A localized climate that differs from the surrounding area, often influenced by factors like elevation, orientation, or human activity.

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A desert located in a tropical climate, characterized by high temperatures, minimal rainfall, and sparse vegetation.

Temperate Desert

A biome characterized by low precipitation, moderate temperatures compared to other deserts, and specific vegetation adapted to these conditions.