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I didn't understand additional revenue through market share increase calculation, if anyone can help

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Hagen
Coach
on May 03, 2025
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience

Hi there,

I would be happy to provide the solution:

  • Given that BabyformulaCo will be provided more shelf space, their market share increases from 30% to 33%. However, out of those 5.16m additional cans of baby formula, they sell 3.00m cans via the WIC.
  • As such, in order to avoid double counting, you need to subtract the WIC cans from the total additional cans sold to arrive at the additional cans through market share increase. Does that clarify things?

Best,

Hagen