Answer to Test #13: Positive Sales Growth, Zero Company Volatility
Volatility and Sales GrowthAnswer to Test #13: Positive Sales Growth, Zero Company Volatility
Yellow Highlighting=Change from Beginning of Period
End of Period |
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Customers in Market |
Amt Purch from all Suppliers | Primary Supplier % of Cust Purch | Units of Sale by Primary Supp | Secondary Supp % of Cust Purch | Units of Sale by Secondary Supp | ||
Customer A | 1500 | Supplier 1 | 60% | 900 | Supplier 2 | 40% | 600 |
Customer B | 1500 | Supplier 1 | 80% | 1200 | Supplier 2 | 20% | 300 |
Customer C | 1000 | Supplier 2 | 50% | 500 | Supplier 3 | 50% | 500 |
Customer D | 0 | None | 0% | 0 | None | 0% | 0 |
Total | 4000 | 2600 | 1400 | ||||
Suppliers in Market | Amount Sold |
% Total Market Share | |||||
Supplier 1 | 2100 | 52.5% | |||||
Supplier 2 | 1400 | 35.0% | |||||
Supplier 3 | 500 | 12.5% | |||||
Total | 4000 | 100.0% | |||||
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Supplier |
Change in Unit Sales Volume | % Volume Change from Beginning to End | Net Unit Volatility in Volume Change | Volatility as % of Unit Sales Volume Change |
Customer Growth in Volume Change |
Customer Growth as % of Unit Sales Volume Change | |
Supplier 1 | 240 | 12.9% | 0 | 0% | 240 | 100% | |
Supplier 2 | 60 | 4.5% | 0 | 0% | 60 | 100% | |
Supplier 3 | 0 | 0.0% | 0 | 0% | 0 | 0% | |
Total | 300 | 8.1% | 0 | 0% | 300 | 100% |
Explanation: In order for this condition to hold, Supplier 1's existing customers must purchase more in total and allocate the same percentage of their purchases to Supplier 1. We reached our answer by having Customer B purchase 1500 units.