Which of the following best illustrates the 80-20 principle?
A)We are a hardware wholesaler,and 20 percent of our sales volume comes from building supply dealers.
B)Fifteen percent of our customers account for 65 percent of our sales volume.
C)Industry sales declined 10 percent last year.
D)Our company's sales increased 18 percent last year.
E)Last year our volume was up 10 percent,but our market share declined 4 percent.

Question

Quizplus · Accepted Answer

The 80-20 principle, also known as the Pareto principle, states that 80% of effects come from 20% of causes. In this scenario, 15% of the customers are responsible for 65% of the sales volume, which illustrates the 80-20 principle.

Which of the Following Best Illustrates the 80-20 Principle