Question

if Lars' Land Racers wanted a unit market share of 24.0% with no change in their Average Selling Price Per Unit, what would their Dollar Market share? Assume that the total market size in dollars and units does not change.

Answer 1

Unit market share= $\frac{Units sold by a Co}{Total Market units}$

Let units sold be X

Let total market sales be Y units

Average selling price is P and remains unchanged

24% $= \frac{X}{Y}\times 100$

Y= $\frac{100X}{24}$

Dollar Market share= $\frac{No. of Dollars earned by the product}{Total dollar sales in the market}$

= $\frac{XP}{\frac{100XP}{24}}$

${XP}\times{\frac{24}{100XP}}= 0.24$