UK0,M<$b@mevgɦmJ8s =-bU#b5')byiDz)%2.&_NKpGtJ|QGdr:>Fj0rA ؞F&!| 4`,mz3[

BUSS1 - Market Size, Share and Growth Calculations

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%

Subscribe to email updates from the tutor2u Business

Join 1000s of fellow Business teachers and students all getting the tutor2u Business team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uBusiness on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Teaching Vacancies

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u