# Why is my math wrong?

I am trying to figure out why my percentages are wrong here. I am calculating the percentage of change in sales from one month to another.

In the first month, we have \$43,731.05 (raw sales) minus \$4,061.91 (returns) to get a total of \$39,669.14 (sales after returns).

In the second month, we have \$34,377.57 (raw sales) minus \$3,724.19 (returns) to get a total of \$30,653.38 (sales after returns).

Here comes the tricky part. I calculate that the change in raw sales from month one to month two is -21%. This is because there were less sales.

I calculate that the change in returns from month one to month two was -8%. This is because there were less returns.

And I calculate that the change in sales after returns from month one to month two was -23%.

Now, if raw sales were down 21% but returns were down 8%, then why would my total be down 23%? Shouldn't it be lower than 21%? Wouldn't the drop in returns mean that the percentage total in sales after returns be lower than the raw sales percentage?

Please explain what I'm doing wrong here.

12 months ago - 1 answers