A sports equipment company sells three models of tennis shoes (Trainer, Balance and Dura). Company records for 2009 and 2010 show the unit price and quantities sold of each model of tennis shoe. See the table below.
The company's financial plan requires that sales volumes (i.e. quantities sold) of all models of tennis shoes must show an increase of at least 12% per annum.
|
Shoemodel
|
2009
|
2010
|
|
Unit price (R)
|
Pairssold
|
Unit price (R)
|
Pairssold
|
|
Trainer
|
320
|
96
|
342
|
110
|
|
Balance
|
445
|
135
|
415
|
162
|
|
Dura
|
562
|
54
|
595
|
48
|
(a) Calculate quantity relatives for each of the three models of tennis shoes. Which model showed the smallest increase in sales volumes?
(b) Calculate a Laspeyres composite quantity index for 2010, using 2009 as the base period.
(c) Has the company achieved its sales volume target for tennis shoes? What conclusion can be drawn from the index?