Question

Levon sells cartoon balloons in town. His family business thrives. Levon's balloons are priced at $7.00 each and sells 315 balloons each month. His largest competitor, Paul, sells 836 balloons each month at a price of $4.00 each. Levon estimates the total balloon market in town to be 2000 per month at an average price of $5.00 per ball

What is Levon's relative market share based on units?

Answer 1

Levon's relative market share, based on units sold, is calculated to be 15.75% of the total balloon market in town.

Step-by-step explanation:

The question asks to calculate Levon's relative market share based on units sold in comparison to the total balloon market in town. To calculate this, we figure out the proportion of the market Levon occupies in terms of units. Levon sells 315 balloons out of a total market of 2000 balloons per month. To determine the market share, we use the formula:

Market Share = (Levon's Sales / Total Market Sales) x 100

Inserting Levon's and total sales we get:

Market Share = (315 / 2000) x 100 = 15.75%

Therefore, Levon's relative market share is 15.75% based on the number of units sold in the market.