Question

Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list of all department stores and their sales for the previous year. Next, she estimates Bloomingdale's market share within the industry. To find the value of one share pont, Caroline must do which of the following? (A) Devide Bloomingdale's sales by total industry sales.(B) Compute gross margin per sales point(C) Estimate total industry marketing expanse.(D) Devide total industy sales by 100.(E) Compute the revenues for Bloomingdale's.

Answer 1

The correct answer is B) Compute gross margin per sales point.

Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list of all department stores and their sales for the previous year. Next, she estimates Bloomingdale's market share within the industry. To find the value of one share point, Caroline must compute the gross margin per sales point.

Gross margin is part of the income statement that firms or industries need to elaborate every year. This metric indicates a detailed description of a company's revenues, expenses, and profit. When preparing a budget, gross margin defines the limits a company must take into account. That is why Caroline must pay close attention to the calculation and computing.