Question

Anne-Marie Cole runs the sales division for a local auto insurance firm. One of her key duties is to calculate her company's market share. When evaluating the prior year's numbers, she found that her firm achieved total sales of $3 million and the entire industry had $30 million in sales. What is Anne-Marie's current market share?

Answer 1

Answer:

The company market share is 10%.

Explanation:

This result comes from identifying what represents $3 million (company sales) within the total industry market. If $30 million is the total size of the market, and by definition, the market share is a piece of cake that the company is responsible in the total cake (market), then the market share in this case would be 3/30, 3 pieces out of 30, which it means 1/10 or 10%