Question

Cloud Services uses a balanced scorecard to report to its investors at the end of each quarter. During the 3rd and 4th quarter, the company had the following results: Quarter 3 Quarter 4 During the quarter: Revenue $ 675,000 $ 810,000 Cost of goods sold 450,000 562,500 Sales and marketing costs 225,000 283,500 General and administrative costs 145,000 495,000 Total market revenue 22,500,000 20,250,000 At the end of the quarter: Cash 12,375,000 11,025,000 Number of revenue-generating customers 27,000 33,750 Number of employees 45 67 What was Cloud’s market share at the end of the 4th quarter?

-17%.

-20%.

-3%.

-6%.

-4%.

Answer 1

Cloud's Market Share in Quarter 4 = Revenue / Total Market Revenue = $810,000 / $20,250,000 = 4%

Hence, the correct option is option E 4%.

Market share is usually calculated by dividing the firm's revenue by total market's revenue in order to understand how much of a market percentage by revenue is the firm controlling and this is known as market share.

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