Answer to Test #8: Positive Sales Growth, Positive Volatility

Volatility and Sales GrowthAnswer to Test #8: Positive 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	2000	Supplier 1	80%	1600	Supplier 2	20%	400
Customer C	1000	Supplier 2	50%	500	Supplier 3	50%	500
Customer D	500	Supplier 3	100%	0	None	0%	0
Total	5000			3000			1500
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	2500	50.0%
Supplier 2	1500	30.0%
Supplier 3	1000	20.0%
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	640	34.4%	0	0%	640	100%
Supplier 2	160	11.9%	0	0%	160	100%
Supplier 3	500	100.0%	500	100%	0	0%
Total	1300	35.1%	500	38%	800	62%

Explanation: In order for this condition to hold, a customer must enter the market and the original customers must purchase more than they had in the beginning of the period. We reached our answer by having Customer D enter the market and by increasing the purchases of Customer B to 2000 units.