Worldwide Applicance Co. put together data to measure sales performance by region of the United States. The Western region included 30% of the U.S. population and was expected to deliver a similar share of Worldwide's sales. This region ended up delivering 30% of the company's overall sales. The performance index for the Western region would be:
A) .90.
B) 1.30.
C) 130.
D) 100.

Question

Quizplus · Accepted Answer

The performance index is calculated by dividing the actual sales by the expected sales. In this case, the Western region delivered the expected share of sales (30%), so the actual sales would be equal to the expected sales. Therefore, the performance index would be 1 (or 100%).