Answer to Test #7: Zero Sales Growth, Positive Volatility

Volatility and Sales GrowthAnswer to Test #7: Zero Sales Growth, Positive 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	1200	Supplier 1	80%	960	Supplier 2	20%	240
Customer C	1000	Supplier 2	50%	500	Supplier 3	50%	500
Customer D	500	Supplier 3	100%	500	None	0%	0
Total	4200			2860			1340
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	1860	44.3%
Supplier 2	1340	31.9%
Supplier 3	1000	123.8%
Total	4200	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	0	0.0%	0	0%	0	0%
Supplier 2	0	0.0%	0	0%	0	0%
Supplier 3	500	100.0%	500	100%	0	0%
Total	500	13.5%	500	100%	0	0%

Explanation: In order for this condition to hold, the existing customers must purchase the same number of units as they had in the beginning of the period, and a new customer must enter the market. We reached our answer by having Customer D enter the market.