Answer to Test #2: Zero Sales Growth, Negative Volatility

Volatility and Sales GrowthAnswer to Test #2: Zero Sales Growth, Negative 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	0	Supplier 1	80%	0	Supplier 2	20%	0
Customer C	1000	Supplier 2	50%	500	Supplier 3	50%	500
Customer D	0	None	0%	0	None	0%	0
Total	2500			1400			1100
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	900	36.0%
Supplier 2	1100	44.0%
Supplier 3	500	20.0%
Total	2500	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	-960	-51.6%	-960	100%	0	0%
Supplier 2	-240	-17.9%	-240	100%	0	0%
Supplier 3	0	0.0%	0	0%	0	0%
Total	-1200	-32.4%	-1200	100%	0	0%

Explanation: In order for this condition to exist, a customer must leave the market, and the remaining current customers must buy the same number of units. We reached our answer by having Customer B leave the market.