Question

Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile communication devices/media players. 2011 industry sales were reported at 17.50 million units. This number represents an 17.7 % increase over 2010 industry sales. Webber Technologies had a 2010 market share of 5.9 %, compared with a 2011 market share of 4.2%. What was the change in unit sales for Webber Technologies, from 2010 to 2011, attributable to the change in industry sales

Answer 1

Answer:

Industry Sales (2011) = 17,500,000

Industry Sales (2010) = Sales of 2011/1+growth = 17,500,000/1+17.7% = 17,500,000/1.177 = $14868309.26083263 = $14,868,309.26

Company Sales (2011) = 17,500,000 * 4.2% = $735,000

Company Sales (2010) = 14,868,309.26 * 5.9% = $877,230.25

Change in units = Company sales in 2011 - Company Sales in 2010  = $735,000 - $877,230.25 = $142,230.25

Change due to change in Industry growth = Company Sales in 2010 * 17.7% = $877,230.25 * 17.7% = 155,269.75

So, there is net increase of 155,269.75 units of sales due to industry growth.