Answer to Test #5: Positive Sales Growth, Zero Volatility

Volatility and Sales GrowthAnswer to Test #5: Positive 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	2500	Supplier 1	80%	2000	Supplier 2	20%	500
Customer C	1000	Supplier 2	50%	500	Supplier 3	50%	500
Customer D	0	None	0%	0	None	0%	0
Total	5000			3400			1600
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	2900	58.0%
Supplier 2	1600	32.0%
Supplier 3	500	10.0%
Total	5000	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	260	19.4%	0	0%	260	100%
Supplier 3	0	0%	0	0%	0	0%
Total	1300	35.1%	0	0%	1300	100%

Explanation: In order for this condition to hold, the original customers must purchase more than they did at the beginning of the period and there would be no customers entering or leaving the market. We achieved this result by increasing Customer B's purchases to 2500.