Metrics finalwith answers.doc

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Published on 26 Mar 2013
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MKT100 - Metrics Mastery Worksheets
Worksheet: Metric 2 Percentage Change
1) Ed’s is a small deli, which has had great success in its second
year of operation. Revenues in Year 2 are $570,000, compared
with $380,000 in Year 1. What is Ed’s year-over-year sales
growth rate?
Answer:
Year-over-Year Sales Growth = (Year 2 – Year 1) / Year 1 * 100%
= ($570,000 - $380,000) / $380,000 *
100%
= 50%
2) A small retain chain posts impressive percentage growth figures,
moving from $58 million to $107 million in sales from one year to
the next. Despite this dynamic growth, however, analysts cast
doubt on the firm’s business model, warning that its existing
stores’ growth measure suggests that its concept is failing.
Based on the chart below, and assuming that stores were
opened on the first day of Years 1 and 2: What is the retail
chain’s year-over-year sales growth rate? What is the year-over-
year sales growth or decrease for each store, as appropriate?
What is the same store (existing and not expansion) year-over-
year growth?
Stor
e
Opene
d
Revenue Year 1
(millions)
Revenue Year 2
(millions)
A Year 1 $10 $9
B Year 1 $19 $20
C Year 1 $20 $15
D Year 1 $9 $11
E Year 2 n/a $15
F Year 2 n/a $12
G Year 2 n/a $7
H Year 2 n/a $18
$58 $107
Answer:
Chain-wide Year-over-Year Sales Growth = (Year 2 – Year 1) /
Year 1 * 100%
= ($107 - $58) / $58
= 84.5%
Store A Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100%
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Document Summary

Worksheet: metric 2 percentage change: ed"s is a small deli, which has had great success in its second year of operation. Revenues in year 2 are ,000, compared with ,000 in year 1. Year-over-year sales growth = (year 2 year 1) / year 1 * 100% = 50: a small retain chain posts impressive percentage growth figures, moving from million to million in sales from one year to the next. Despite this dynamic growth, however, analysts cast doubt on the firm"s business model, warning that its existing stores" growth measure suggests that its concept is failing. Chain-wide year-over-year sales growth = (year 2 year 1) / Store a year-over-year sales = (year 2 year 1) / year 1 * 100% Store b year-over-year sales = (year 2 year 1) / year 1 * 100% Store c year-over-year sales = (year 2 year 1) / year 1 * 100%

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