Question

Chelsea Lee runs the sales division for a local auto insurance firm. One of her key duties is to ensure the company has 10 percent market share by the end of the year. When evaluating the current sales numbers, she determines that her sales division has total sales of $3 million and the entire industry has total sales of $50 million. What additional sales must Chelsea Lee's division meet to ensure they have 10 percent of the market by the end of the year?A. $2 millionB. $1 millionC. $5 millionD. $10 million

Answer 1

Answer:

The answer is A. $2 million

Explanation:

Market share is the percent of total sales in an industry generated by a particular company.

The company target market share = $50 million * 0.1= $5 million

additional sales = $5 million -  $3 million = $2 million

Chelsea Lee's division must make additional sales of $2 million