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
Customers in Market	Amt Purch from all Suppliers	Primary Supplier	Primary Supplier % of Cust Purch	Units of Sale by Primary Supp	Secondary Supplier	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%
*Summary of Changes During Period*
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.