Superba Cravats is a major marketer of men's bow ties.It estimates there are 20 million buyers of bow ties each year,that the average wearer of bow ties purchases 4 ties per year,and that the average price per bow tie is $10.Superba Cravats has a market share of 20 percent.The sales forecast or company forecast for Superba would be:
A)$80 million.
B)$160 million.
C)$400 million.
D)$800 million.

Question

Quizplus · Accepted Answer

To calculate the sales forecast for Superba Cravats, we need to multiply the estimated number of buyers (20 million) by the average number of ties purchased per year (4) and the average price per tie ($10). Then, we need to multiply this by the company's market share (20%).

Sales forecast = Number of buyers x Average ties purchased x Average price x Market share
Sales forecast = 20 million x 4 x $10 x 20%
Sales forecast = $160 million

Therefore, the correct answer is B) $160 million.

Superba Cravats Is a Major Marketer of Men's Bow Ties