Premier Bank considers population an effective measure of sales potential for its safe deposit boxes. It has broken down the population of the U.S. by region and assigned 30 percent of the total population to the Northeastern region. If Premier has a planned sales goal of $2.5 million nationwide, and actual sales in the Northeastern region last year were $650,000, what was the Northeastern region's performance index (to the nearest whole number percent)?
A) 33 percent
B) 50 percent
C) 66 percent
D) 75 percent
E) 87 percent

Question

Quizplus · Accepted Answer

The performance index is calculated by dividing the actual sales by the expected sales (based on the population percentage) and then multiplying by 100 to get a percentage. Expected sales for the Northeastern region would be 30% of $2.5 million, which is $750,000. The actual sales were $650,000. So, the performance index is ($650,000 / $750,000) * 100 = 86.67%, which rounds to 87 percent.

Premier Bank Considers Population an Effective Measure of Sales Potential