Question

Consider the Northern California territory of Nova generates a sales revenue of $320,000 with four salespeople. The territory accounts for 10% of the total instrument rental market of $64 million. Thus, the market share and productivity of salespeople in this territory are __________ respectively.

Answer 1

Answer: e)5% and $80,000

Explanation:

$320,000 was generated by the salespeople in this territory.

This territory comprises 10% of a $64 million market.

Territory comprises of = 10% * 64,000,000 = $6,400,000

Their market share is therefore;

= $\frac{320,000}{6,400,000}$ * 100%

= 5%

Four people made sales of $320,000.

Their productivity = $\frac{320,000}{4}$

= $80,000