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Hi friends, I am suck with a particular question because I could not work out the market growth and average of annual market growth. I looked at the answer but still don’t understand how this figures has come up. Could you please let me know.
Come on guys, I am sure someone must have done this question. Please look at the answer and let me know how the examiner worked it out the answer for market growth? Much appreciated.
Hi Daisy,
Sure I’ve done this question. I’ll work through the restaurants bit.
The basic calculation is
Current Year/Past Year x 100.
So market growth in restaurants would be (10,860 / 10,752) x 100 = 1.01%
Or 1.0% rounded.The average is much the same. So take the growth between each year;
%
2000-2001 1.0
2001-2002 1.0
2002-2003 0.0 (Stayed the same but still counts as a growth period)Average growth is, Total / Number of growth periods
So (1.0 + 1.0 + 0.0) / 3 = 0.67
Hope this helps
Thank you so much Jay. I just realised where I have gone wrong after you have explained the marget growth. I was calculating the market growth for this particular company not for the entire industry. That why I did not get the answers. I was so silly. Thanks for pointing out the calculations. Good luck for the exam
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