227k views
4 votes
In the subject of Business, a clothing company made $800 million worth of revenue on backpacks this year. The total market for backpacks is $16 billion. What is the company's market share?

a. 1.8%
b. 13.046%
c. 5.0%
d. 95.096%

User Nital
by
7.4k points

1 Answer

3 votes

Final answer:

The clothing company's market share for backpacks is calculated by dividing its sales by the total market sales and multiplying by 100, resulting in a market share of 5.0%.

Step-by-step explanation:

To calculate the market share of a company, you divide the company's total sales by the total sales of the entire market, and then multiply the result by 100 to convert it into a percentage. In this case, the clothing company made $800 million in revenue from backpacks, and the total market for backpacks is $16 billion.

The calculation for market share would be:
(Company's Sales / Total Market Sales) × 100 = ($800 million / $16 billion) × 100 = 0.05 × 100 = 5.0%.

So the answer is c. 5.0%, indicating the company's market share of the total backpack market.

User Ruben Miquelino
by
8.1k points