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Noble pets december 2014 b ii

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Noble pets december 2014 b ii

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Ken Garrett.
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  • November 3, 2020 at 4:39 pm #593974
    rimshy
    Member
    • Topics: 95
    • Replies: 91
    • ☆☆

    I am confused with implications it says demand figures would be closer to 300000 tonnes how they have calculated this and also to calculate noble pets demand they again calculated 300000* 30% whats all this done please explain

    November 3, 2020 at 5:45 pm #593992
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    What it is trying to say is that the calculated regression line is heavily influenced by the steep decline in moist food sales from 2007 to 2011. The line is therefore implying a future steep decline in sales. However, if you look at the figures then 2012 and2013 seem to show the decline has ceased and that sales might have stabilised. It might therefore be better to base future predictions of market size on 310,000 (or 300,000 – a round figure estimate) than on a regression line where some readings are out of date.

    NP currently has a 30% market share of moist food. Therefore, NPs likely sales of moist food might be estimated at 30% x 300,000 = 90,000.

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