2020 s/d examiners report

Example 3 A company had budgeted sales of $30.9 million within a market worth $61.8 million. When the budget was drafted, it was assumed that inflation would be 3%. After the end of the budget period, it was discovered that inflation had been 2% and that the market had been worth $65 million. What is the sales revenue figure which should be used when assessing company performance (to one decimal place)? $ ____________ million What does this test? ? Understanding of the impact of external considerations on performance. What is the correct answer? ? The correct answer is $32.5 million Sales forecast adjusted for inflation only: 30.9 x 1.02/1.03 = 30.6 $61.8 million would have included inflation of 3%, so adjusting that for the actual 2% inflation, 61.6 x 1.02/1.03 = 61.2 Market growth = 65/61.2 = 1.0621 Therefore, a fair sales figure to aim for would be: 30.6 x 1.0621 = 32.5 ———— How i did it: I assumed that budget sales and market size figures given is adjusted for 3% inflation So i calculated the market share of 50 % from the budget numbers (30.9 / 61.8 *100) Then applied 50% market share, to the revised market size of 65m (assuming this is also adjusted for 2% indlation) to get 32.5 million. Sir, even though i got the correct answer, I do not understand the inflation adjustment done in the solution provided by examining team. Could you pls help?