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 revenue market share?

Answer 1

Levon's revenue market share is 22.05%, calculated by dividing his total monthly balloon revenue by the total market revenue.

Step-by-step explanation:

Levon's revenue market share is calculated by dividing his revenue by the total market revenue and then multiplying by 100 to get the percentage. Levon sells 315 balloons at $7.00 each, so his monthly revenue is 315 balloons × $7.00/balloon = $2,205. The total market sells 2000 balloons at an average price of $5.00 each, making the total market revenue 2000 × $5.00 = $10,000 per month. Therefore, Levon's revenue market share is ($2,205 / $10,000) × 100 = 22.05%.