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can you help me with this question
Leaf Limited has had a mixed year. Its market share has improved 2% to 20% but the
overall market had contracted by 5% in the same period. The budgeted sales were 504,000
units and standard contribution was $12 per unit.
What is the level of actual sales?answer – Up by 5.55% to 532,000 units
i didn’t understand how they come up this result in kaplan kit question 198The budgeted sales were 504,000 and they were budgeting on a market share of 18%.
So they were expecting the total market sales to be 504,000/18% = 2,800,000
The market had contracted by 5%, so the actual total market sales were 95% x 2,800,000 = 2,660,000
Their actual market share was 20%, so their actual sales must have been 20% x 2,660,000 = 532,000.
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