Answer to Test #3: Positive Sales Growth, Negative Volatility

Volatility and Sales GrowthAnswer to Test #3: Positive 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	2500	Supplier 1	80%	2000	Supplier 2	20%	500
Customer C	0	Supplier 2	50%	500	Supplier 3	50%	0
Customer D	0	None	0%	0	None	0%	0
Total	4000			2900			1100
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	2900	72.5%
Supplier 2	1100	27.5%
Supplier 3	0	0.0%
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	1040	55.9%	0	0%	1040	100%
Supplier 2	-240	-17.9%	-500	208%	260	-108%
Supplier 3	-500	-100.0%	-500	100%	0	0%
Total	300	8.1%	-1000	-333%	1300	433%

Explanation: In order for this condition to be satisfied, a customer must leave the market and the remaining original customers must purchase more than they purchased at the beginning of the period. Our answer satisfies this condition by having Customer C leave the market and Customer B increase its purchases to 2500 units.