Answer to Test #4: Negative Sales Growth, Zero Volatility
Volatility and Sales GrowthAnswer to Test #4: Negative Sales Growth, Zero 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 | 500 | Supplier 1 | 80% | 400 | Supplier 2 | 20% | 100 |
Customer C | 1000 | Supplier 2 | 50% | 500 | Supplier 3 | 50% | 500 |
Customer D | 0 | None | 0% | 0 | None | 0% | 0 |
Total | 3000 | 1800 | 1200 | ||||
Suppliers in Market | Amount Sold |
% Total Market Share | |||||
Supplier 1 | 1300 | 43.3% | |||||
Supplier 2 | 1200 | 40.0% | |||||
Supplier 3 | 500 | 16.7% | |||||
Total | 3000 | 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 | -560 | -30.1% | 0 | 0% | -560 | 100% | |
Supplier 2 | -140 | -10.4% | 0 | 0% | -140 | 100% | |
Supplier 3 | 0 | 0.0% | 0 | 0% | 0 | 0% | |
Total | -700 | -18.9% | 0 | 0% | -700 | 100% |
Explanation: In order for this condition to hold, ethe xisting customers in the market must buy fewer units and no customer must enter or leave the market. For our answer, we changed Customer B's purchases to 500.