Question

Your bagel company has a market share of 7% of area breakfast sales and you have a goal to increase that to 10% in 1 year. The market has $3,500,000 in breakfast sales per week. How much must you increase sales to achieve your goal?

Answer 1

1. Calculate the market share that you have (7%)
2. Calculate what 10% of the market share would be
3. Subtract 10% from 7%

Answer 2

To achieve your goal, you have to increase your sales in $105,000 per week.

Explanation:

First, you have to determine the amount of sales you have considering that you have a market share of 7%:

$3,500,000*7%= $245,000

Now, you have to find the amount of sales you need to increase your market share to 10%:

$3,500,000*10%= $350,000

Then, you have to calculate the difference between your expected and current market share:

$350,000-$245,000= $105,000