Here they've calculated the increase in revenue in a convoluted way, I would've thought that if the market share increased by 3% then the additional revenue would simply be 3% x total market size (4.3bil) = $129mil
Or was I supposed to clarify whether market share is in terms of units sold (as opposed to rev/year ie 3% of 4.3bil)? In which case it makes sense because I need to figure out how many additional units and multiple by avg sale price.
Hi there,
I would be happy to provide the solution:
Best,
Hagen
Hi there,
Great question!
Always ask questions when a case doesn't make sense. It doens't necessarily mean there's a mistake there, but it's always worth going deeper in order to validate it.
Basically, you need to subtract those WIC cans to avoid doublecounting. Then you should get to the same number as in the solution.
Sharing with you a couple of other cases you might find useful to practice:
Best,
Cristian
(edited)
