Question 118

Bennett distribution company, a subsidiary of a major cosmetics manufacturer Bavlon, is forecasting the zonal sales for the next year. Zone I with current yearly sales of Rs. 193.8 lakh is expected to achieve a sales growth of 7.25%; Zone II with current sales of Rs. 79.3 lakh is expected to grow by 8.2%; and Zone
III with sales of Rs. 57.5 lakh is expected to increase sales by 7.15%. What is the Bennett’s expected sales growth for the next year?

Solution

zone 1 will grow to become 193.8*1.0725= 207.85

zone 2 will grow to become 79.3*1.082=85.8

zone 3 will grow to become 57.5*1.0715=61.61

Total sales this year = 355.26

Total sales last year = 330.6

Growth = $$\frac{355}{330}$$ = 1.0746 i.e. growth of 7.46%

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