Skip to main contentSkip to solution

The table given below provides the details of monthly sales (in lakhs of rupees) and the value of products returned by the customers (as a percentage of sales) of an e-commerce company for three product categories for the year 2024. Net sales (in lakhs of rupees) is defined as the difference between sales (in lakhs of rupees) and the value of products returned (in lakhs of rupees).

MonthSales (in lakhs of rupees)Value of products returned (as a percentage of sales)
ApparelFootwearElectronicsApparelFootwearElectronics
January26210428913%7%2%
February27911338716%9%3%
March23612128320%7%2%
April2585832516%8%1%
May2496935912%6%4%
June23011132119%5%3%
July24411934117%9%4%
August2526033616%6%2%
September28811835510%9%5%
October22210838315%8%2%
November2289328214%9%4%
December2218626818%10%1%

Among the following four months, for which month the contribution of the Apparel category in the total monthly sales was the highest?

Solution

✅ Correct Option: 2

The contribution of Apparel to Total Sales is calculated as:

Apparel contribution=Apparel salesTotal sales of all categories×100%\text{Apparel contribution} = \dfrac{\text{Apparel sales}}{\text{Total sales of all categories}} \times 100\%


Let's find the total sales for each month by adding sales from all three categories:

MonthApparel SalesFootwear SalesElectronics SalesTotal Sales
January262104289655
April25858325641
August25260336648
December22186268575

Now let's calculate the exact contribution percentage for each month:

MonthApparel SalesTotal SalesCalculationContribution %
January262655

262655×100%\frac{262}{655} \times 100\%

40.00%
April258641

258641×100%\frac{258}{641} \times 100\%

40.25%
August252648

252648×100%\frac{252}{648} \times 100\%

38.89%
December221575

221575×100%\frac{221}{575} \times 100\%

38.43%

Conceptual understanding:

Contribution percentage measures what portion of the total monthly revenue comes from the Apparel category.

Even though January had higher absolute Apparel sales (262 vs 258), April had proportionally lower sales from other categories, making Apparel's share of the total pie larger.

Therefore, April had the highest contribution of Apparel category to total monthly sales at 40.25%.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question