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Jewels-R-Us is a U.S.-based jewelry retailer with annual revenue of $1.5M in 2010 and $2.1M in 2013.
The chart shows how its product mix (% of revenue) changed across three categories: Watches, Fashion Jewelry, and Wedding & Engagement.
Which product category saw the largest increase in revenue dollars over this period? Estimate the increase.
Your answer:
📋 Solution:
First, total revenue increased from $1.5M in 2010 to $2.1M in 2013 — that’s a 40% increase.
Now, looking at the product mix chart, only one category — Fashion Jewelry — saw a large increase in its percentage share, jumping from 20% to 35%. That’s a +15 percentage point swing, the largest of the three categories.
Watches and Wedding & Engagement both decreased as a share of revenue, so even though overall revenue went up, their growth in dollar terms is likely smaller — or possibly even flat or declining for Watches.
Since Fashion Jewelry grew both in % share and in total dollars, it’s clearly the winner. Now we only need to compute the revenue change for that one category.
- In 2010: 20% × $1.5M = $0.30M
- In 2013: 35% × $2.1M = $0.735M
- Increase: $0.735M – $0.30M = $0.435M (or about $435,000)
Answer:
Fashion Jewelry had the largest increase in revenue, growing by approximately $435,000.