Question

The Loyola Widget company sells 5,000 units in a given year. Total industry sales of widgets for that year are 100,000 units. The ratio of the company's sales to total industry sales is referred to as:

Answer 1

Market share

Step-by-step explanation:

For computing the ratio between company sales and the total industry sale we use the market share.

The market share is that share through which the company can hold it by some percentage. We have the calculation also for better understanding

By using the formula, the computation is shown below:

= Company sales units ÷ total industry sales

= 5,000 units ÷ 100,000 units

= 0.05 or 5%

So by 5%, the Loyola widget company controls the total industry sales.