A company projects that it receives no profit (zero) in a period. However, it receives the profit in the amount of 300 currency units.
What is the difference between the actual result and plan in percentage? Say, if it projects a profit of 200 and the actual profit is 300, we get (300-200)/200=50% , the actual result is 50% better than the plan.
But what is the percentage result if the beginning value is zero?
Helpe me please! Some say this has no solution. I don't believe it's that bad!
plan is 0 profit and actual profit is 'a' where , so by your calclation projected profit is .
This has a zero divisor and cannot be defined.
So, there is no solution to this problem and this company's performance cannot be expressed in percent in this case?
There is no way of finding a percentage increase where the baseline number is zero.