Instructions

DIRECTIONS for the following two questions: Answer the questions on the basis of the information given below.

An industry comprises four firms (A, B, C, and D). Financial details of these firms and of the industry as a whole for a particular year are given below. Profitability of a firm is defined as profit as a percentage of sales.

Question 27

If firm A acquires firm B, approximately what percentage of the total market (total sales) will they corner together?

Solution

If A acquires firm B , the total sales of 2 firms is 50036 . now the percent market share can be given by 50036*100/89576 which is equal to around 55% . Hence option A.

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If firm A acquires firm B, approximately what percentage of the total market (total sales) will they corner together?

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