Market share formula

Market share formula

• A. total market sales / total product or business sales x 100
• B. total product or business sales / total sales in whole market x 100
• C. market share is calculated by subtracting costs from revenue
• D. product sales divided by total market sales

Answer: (B)

Market share shows how large a part of the total market a business or product captures. It’s calculated by taking its sales and dividing by the total market sales, then multiplying by 100 to express the result as a percentage. That matches product sales divided by total market sales x 100. This is the best formula because it directly compares the sales of the product or business to the entire market and converts it into a percentage. The first option would invert the ratio, giving the wrong value. The third option describes profit, not market share. The fourth option gives the ratio but misses the step of converting it to a percentage.

Market share shows how large a part of the total market a business or product captures. It’s calculated by taking its sales and dividing by the total market sales, then multiplying by 100 to express the result as a percentage. That matches product sales divided by total market sales x 100. This is the best formula because it directly compares the sales of the product or business to the entire market and converts it into a percentage.

The first option would invert the ratio, giving the wrong value. The third option describes profit, not market share. The fourth option gives the ratio but misses the step of converting it to a percentage.