Industry sales for the year are expected to be 4,000,000 units. A company estimates its sales potential at 1,500,000 units, but actually sold 1,200,000 units. The company's sales penetration rate is 30 percent.

Question

Quizplus · Accepted Answer

The company's sales penetration rate is calculated as the actual sales divided by the sales potential, not the industry sales. Therefore, the sales penetration rate is 1,200,000 / 1,500,000 = 0.8 or 80%.

Industry Sales for the Year Are Expected to Be 4,000,000