Answer to Test #1: Negative Sales Growth, Negative Volatility

Volatility and Sales GrowthAnswer to Test #1: Negative 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	0	Supplier 1	80%	0	Supplier 2	20%	0
Customer C	800	Supplier 2	50%	400	Supplier 3	50%	400
Customer D	0	Supplier 3	60%	0	None	0%	0
Total	2300			1300			1000
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	900	39.1%
Supplier 2	1000	43.4%
Supplier 3	400	17.4%
Total	2300	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	-960	-51.6%	-960	100%	0	0%
Supplier 2	-340	-25.4%	-240	71%	-100	29%
Supplier 3	-100	-20.0%	0	0%	-100	100%
Total	-1400	-37.8%	-1200	86%	-200	14%

Explanation: To achieve this result, the original customers must buy fewer units and a customer must leave the market. For our answer, we had Customer B leave the market and Customer C purchase fewer units.