Answer to Test #15: Zero Sales Growth, Positive Volatility

Volatility and Sales GrowthAnswer to Test #15: Zero Sales Growth, Positive 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	100%	1500	Supplier 2	0%	0
Customer B	1200	Supplier 1	80%	960	Supplier 2	20%	240
Customer C	1000	Supplier 2	50%	500	Supplier 3	50%	500
Customer D	0	None	0%	0	None	0%	0
Total	3700			2960			740
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	2640	66.5%
Supplier 2	740	20.0%
Supplier 3	500	13.5%
Total	3700	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	600	32.3%	600	100%	0	0%
Supplier 2	-600	-44.8%	-600	100%	0	0%
Supplier 3	0	0%	0	0%	0	0%
Total	0	0%	0	0%	0	0%

Explanation: In order for this condition to hold, customers must purchase the same units they had purchased at the beginning of the period, and at least one customer must allocate more of its purchase volume to the company. We reached our answer by having Customer A purchase 100% of its needs from the company.