Math Question McKinsey Prep Case

Anonymous A asked on Aug 26, 2019

Hello, I would appreciate if anyone could help out with this quesiton. I do not understand the logics behind it. Thanks a lot

Water & Bottle has produced 350,000 water bottles since its inception and secondary manufacturers have produced 250,000 water bottles. Water & Bottle expects to be able to capture 25% of the total market in year one and 35% of the total market by year two. Additionally, Water & Bottle expects to increase overall sales by an additional 10% in year two as customers will be specifically interested in this add-on. After that, Water & Bottle expects competitors to enter this market with their version of the add-on. When looking at producing this add-on, how large of a market is Water & Bottle looking at?

Answer: 294,525

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