The Market Size for Loppins Is 80 Million Units

question 46

Multiple Choice

The market size for Loppins is 80 million units. If SPI Inc. has a market share of 30% and the average sales price is $2 per Loppin, what is the dollar amount of sales of SPI?

• A) $40 million
• B) $42 million
• C) $45 million
• D) $48 million

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Definitions:

Liquidity

The ability of an asset to be quickly converted into cash or an individual's or entity's ability to meet immediate and short-term obligations.

Solvency

A financial metric indicating whether a company can meet its long-term financial obligations, focusing on its ability to continue operations over the long term.

Return On Common Equity

Return on Common Equity (ROCE) measures the return a company generates on the common equity held by its shareholders, indicating how effectively equity is used to generate profits.

Net Income

A company's overall earnings minus all expenditures and tax obligations.