Question

Anne marie cole runs the sales division for a local auto insurance firm. one of her key duties is to ensure the company has 10 percent market share by the end of the year. when evaluating the current sales numbers, she determines that her sales division has total sales of $3 million and the entire industry has total sales of $50 million. what additional sales must anne marie's division meet to ensure they have 10 percent of the market by the end of the year?

Answer 1

The correct answer is $2,000,000.

In order for her sales to meet 10% of $50 million dollars they will need to reach $5 million by the end of the year. The insurance firm currently has total sales of $3 million, so will need to have an additional $2 million in sales in order to reach the $5 million / 10% threshold.