Instructions

Read the following information and tables and answer the questions that follow.

Torrent Enterprises sells air conditioners of Eagle Brand in the retail market of Delhi. The month-wise total number of Window Air Conditioner (WAC) units sold by Torrent during April 2014 to March 2015 are shown below in Table A. Table B shows the share of different types of WACs in total monthly sales for the said period.


Number of Units Sold by Torrent Enterprises During the Period April 14 to March 15 

  Table A


 Table B

Performance measures are as follows:
Half Yearly Sales Performance:

$$\frac{\text{Oct 14 to Mar 15 Average Sales - April 14 to Sep 14 Average Sales}}{\text{April 14 to Sep 14 Average Sales}}$$

Monthly Sales Performance: 

$$\frac{\text{Current Month Sales - Pervious Month Sales}}{\text{Previous Month Sales}}$$

Sales Volatility:

$$\frac{\text{Maximum Monthly Sales - Minimum Monthly Sales}}{\text{Average Monthly Sales}}$$

Question 75

Which type of WAC has the least Sales Volatility?

Solution

Let's calculate the different WAC types during April 2014 - March 2015 and tabulate it as follows 

Sales Volatility can be calculated by the formula (Maximum Monthly Sales - Minimum Monthly sales )/ Average Monthly sales

1⁄2 Ton = 609-207/352.128 = 1.14

1 Ton =459-153/281.37 = 1.09

11⁄2 Ton = 439-241/338.03 = 0.59

2 Ton = 419-253/ 329.138 = 0.5

Among the different WAC types 2 Ton has the lowest Sales volatility.

Hence D is the correct answer.


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