Question

The revenue for the total window cleaning market is $1,574,000. The market shares for each of the companies in this market are as follows: 1) Sunnyside – 8.8%, 2) White Shark – 23.2%, 3) Paneless Perfection – 11.7%, 4) Squeegies – 19.1%, 5) Precision Cleaning – 27.6%, 6) Glass First – 9.6%. What is the revenue to the nearest dollar for the third company in this list?

Answer 1

Solution:

Revenue is calculated as;

Revenue = Market share x Total revenue

1) Sunny side revenue = 8.8% x $1,574,000

Sunny side revenue = (8.8/100) x $1,574,000

Sunny side revenue = $138,512

2) White Shark revenue = 23.2% x $1,574,000

White Shark revenue = (23.2/100) x $1,574,000

White Shark revenue = $365,168

3) Paneless Perfection revenue = 11.7% x $1,574,000

Paneless Perfection revenue = (11.7/100) x $1,574,000

Paneless Perfection revenue = $184,158

4) Squeegies revenue = 19.1% x $1,574,000

Squeegies revenue = (19.1/100) x $1,574,000

Squeegies revenue = $300,634

5) Precision Cleaning revenue = 27.6% x $1,574,000

Precision Cleaning revenue = (27.6/100) x $1,574,000

Precision Cleaning revenue = $434,424

6) Glass First revenue = 9.6% x $1,574,000

Glass First revenue = (9.6/100) x $1,574,000

Glass First revenue = $151,104

From the above calculated revenue of each firm, the revenue of the third company in the list, i.e. Paneless Perfection is $184,158