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

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 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%


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 -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.