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# BUSS1 - Market Size, Share and Growth Calculations

Jim Riley

10th April 2015

Students preparing for AQA BUSS1 need to be ready to calculate and interpret data that relates to the size and growth of a market and to the market shares achieved by competitors in the market.The BUSS1 exam may include information which enables these calculations to be performed - indeed the questions may require students to undertake such calculations. Students might also be required to use market-related data to calculate a firm's revenues as part of a profit or breakeven calculation.I have summarised below the formulae that you need to know and provided some examples of how to use them.

 Calculating Market Size (per period) Example: Method 1 Number of units sold in market (per period) Units 100,000 Average selling price (£) in market SP £15.00 Market size = (Unit x SP) MSize £1,500,000 Example: Method 2 Firm's revenues (per period) Revs £250,000 Market Share (%) MShare 5.0% Market size = (Revs / Market Share) MSize £5,000,000 Calculating a Firm's Revenues Example: Method 1 Number of units sold (qty) in period Units 5,000 Average selling price (£) SP £20 Firm's Sales Revenue = Revs £100,000 Example: Method 2 Market size (£) MSize £2,000,000 Firm's Market share (%) MShare 5.0% Firm's Sales Revenue = MSize x MShare Revs £100,000 Calculating the Market Growth Rate (%) Example: Market Size (£) This Year (Y1) Y1 £4,600,000 Market Size (£) Last Year (Y0) Y0 £4,200,000 Change in Market Size (£) (Y1 - Y0) £400,000 Percentage Change (%) = (Y1 - Y0)/Y0 9.5%

#### Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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