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Question found in 2007 December P5 paper. Part (a) of Question no 03.
The question name is ‘Healthy Eating Group (HEG).
How was 45000 derived as sales figure? A detailed explaination will be very helpful. Please help! Thank you.Total market size = 625m units at $2.40
Our customer has 4% so their revenue is 625 x 4% x 2.40 = $60m
There is a mark-up of 33 1/3%, so if we sell an item to the customer for 3, they sell it at 4.
Therefore, if they are selling goods worth $60m we must have sold to them at $60m x 3/4 = $45m
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