Indian Institute of Foreign Trade 2009 Solved Paper

Question : 118 of 122

Marks: +1, -0

Bennett distribution company, a subsidiary of a major cosmetics manufacturer Bavlon, is forecasting the zonal sales for the next year. Zone I with current yearly sales of Rs. 193.8 lakh is expected to achieve a sales growth of 7.25%; Zone II with current sales of Rs. 79.3 lakh is expected to grow by 8.2%; and Zone III with sales of Rs. 57.5 lakh is expected to increase sales by 7.15%. What is the Bennett’s expected sales growth for the next year?

7.46%
7.53%
7.88%
7.41%

Validate

Solution:

zone 1 will grow to become

193.8×1.0725=207.85

zone 2 will grow to become

79.3×1.082=85.8

zone 3 will grow to become

57.5×1.0715=61.61

Total sales this year

=355.26

Total sales last year

=330.6

Growth

=355/330=1.0746

i.e. growth of 7.46%

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