Which of the following best illustrates the 80-20 principle?
A)Our company's sales increased 80 percent last year,but the industry's volume went up only 20 percent.
B)Sixty-eight percent of our customers account for only 12 percent of our sales.
C)Company volume increased 10 percent,but sales in territory A decreased 4 percent.
D)Eighty percent of our customers account for 80 percent of our sales;20 percent of our customers account for 20 percent of our sales.
E)Eighty percent of our territories usually are not profitable.

Question

Quizplus · Accepted Answer

This option illustrates the 80-20 principle, also known as the Pareto Principle, which states that 80 percent of effects come from 20 percent of causes. In this case, it means that a small percentage of customers (20 percent) account for a large percentage of sales (80 percent).

Which of the Following Best Illustrates the 80-20 Principle