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Which of the following is the proper Chain Ratio Analysis and why? A.) Total amount of money spent on Frozen dog food in the Boston

Which of the following is the proper Chain Ratio Analysis and why?

A.)

Total amount of money spent on Frozen dog food in the Boston market

$1,920,000 million

Target Market

Percent of Target Market that spends money on dog food

Sales Potential

Formula

Parents with school-age children

79%

$1,516,800

$1,920,000 million x .79

Parents with younger/older children

71%

$1,363,200

$1,920,000 x .71

Roommate households

72%

$1,382,400

$1,920,000 x .72

Young childless couples

73%

$1,401,600

$1,920,000 million x .73

Household income > $50K

63%

$1,209,600

$1,920,000 million x .63

Total Market Sales Potential in Boston

$ 6,873,600

Add all sales potential

B.)

Total amount of money spent on Frozen dog food in the Boston market

$1,920,000 million

Target Market

Percent of Target Market that spends money on dog food

Sales Potential

Formula

Parents with school-age children

79%

$1,516,800

$1,920,000 million x .79

Parents with younger/older children

71%

$1.076,928

$1,516,800 x .71

Roommate households

72%

$775,388

$1,076,928 x .72

Young childless couples

73%

$566,033

$775,388 x .73

Household income > $50K

63%

$356,601

$566,033 x .63

Total Market Sales Potential in Boston

$ 3,781,320

Add all sales potential

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