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

To calculate the change in unit sales for Webber Technologies from 2010 to 2011, find the difference in market shares and multiply by the industry sales increase.

Step-by-step explanation:

To calculate the change in unit sales for Webber Technologies from 2010 to 2011, we need to find the difference in market shares over the two years and multiply it by the industry sales increase. In 2010, Webber Technologies had a market share of 5.9%. In 2011, the market share dropped to 4.2%. The difference is 5.9% - 4.2% = 1.7%.

Now, we multiply this percentage by the increase in industry sales. The increase in industry sales is 17.7% of 17.50 million units, which is 0.177 × 17.50 = 3.09 million units. Multiplying this by the market share difference, we get 3.09 million × 0.017 = 0.05253 million units. Therefore, the change in unit sales for Webber Technologies, attributable to the change in industry sales, is approximately 52,530 units.

Answer 2

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.