Jerry Silverman owns a local bagel shop. Total sales for his target market are $1.5 million...
Jerry Silverman owns a local bagel shop. Total sales for his target market are $1.5 million per year. He currently attracts 12 percent of the market. If he increases market share to 18 percent, by what dollar amount will his yearly sales increase?
Homework Answers
Target sales = $1.5 million i.e. 12% of market share
Market share = $1.5 million / 12% = $12.5 million
18% of market share = $12.5 million x 18% = $2.25 million
Increase in sales = $2.25 million - $1.5 million = $0.75 million or $750,000
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