St.Paul Equipment Company experienced a 15 percent sales gain that,on the surface,appears favorable.However,if total industry sales are up 30 percent,an analysis of ____ could suggest that the firm has not fared well relative to competitors.

Question

Quizplus · Accepted Answer

The best choice is market share. A 15 percent sales gain may seem favorable, but if the total industry sales are up by 30 percent, it indicates that the company's increase in sales is not keeping up with the overall market growth. This suggests that the firm has lost market share to competitors who are experiencing a more significant sales increase. Therefore, analyzing market share could suggest that the firm has not fared well relative to competitors.

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