It has been given to us that because of a downturn in the economy, you expect sales to decrease by 3% this year. Thus, the sales this year will be 3% lower than the sales of previous year which stood at $ 190,000.
Therefore, the sales this year can be calculated as:
[tex] 190000-\frac{3}{100}\times 190000=190000-5700=184300 [/tex]
Therefore, the sales this year will be $ 184300.
Now, for the next year, it has not been mentioned anywhere in the question is the sales will remain as it is of if the sales will continue to dip at 3%. Thus, let us look at both the scenarios.
Scenario 1
If the sales do not go down then the sales next year will be $ 184300 too.
Scenario 2
If the sales go down further by 3%, then the sales next year will be:
[tex] 184300-\frac{3}{100}\times 184300=184300-5529=178771 [/tex]
Thus, the sales next year will be $ 178771 if the downturn continues.
