Question

In: Accounting

1. Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile communication...

1. Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile communication devices/media players. 2011 industry sales were reported at 17.21 million units. This number represents an 19.2 % increase over 2010 industry sales. Webber Technologies had a 2010 market share of 5.8 %, compared with a 2011 market share of 4.2%. What was the change in unit sales for Webber Technologies, from 2010 to 2011, attributable to the change in industry sales? Report your answer in individual units

2. Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile communication devices/media players. 2011 industry sales were reported at 17.63 million units. This number represents an 18.5% increase over 2010 industry sales. Webber Technologies had a 2010 market share of 5.8 %, compared with a 2011 market share of 4.1 %. What was change in unit sales for Webber Technologies, from 2010 to 2011, attributable to its change in market share? Report your answer in individual units.

Solutions

Expert Solution

Answer to Part (1)
Industry Sales (2011) 17210000
Industry Sales (2010)
14437919
Company Sales (2011) =17210000*4.2%
722820
Company Sales (2011) =14437919*5.8%
837399.3
Change in units =Company sales in 2011- Company Sales in 2010
114579.3
Change due to change in Industry growth =Company Sales in 2010*19.2%
138781.4

There is net increase of 138781.4 units of sales due to industry growth.

Answer to Part (2)
Industry Sales (2011) 17630000
14877637
Company Sales (2011) =17210000*4.1%
740460
Company Sales (2011) =14437919*5.8%
862903
Change in units =Company sales in 2011- Company Sales in 2010
122443
Change due to change in Market share =(Industry Sales in 2011*5.8%)-(Industry Sales in 2011*4.1%)
299710

Thus there is a decrease in 299710 units of sales due to market share decrease.


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