Certified Professional Category Analyst (CPCA) Practice Exam 2025 - Free CPCA Exam Practice Questions and Study Guide

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Subsidized volume is calculated as the difference between which of the following and promoted sales?

Incremental sales

Subsidized volume is accurately described as the difference between incremental sales and promoted sales. Incremental sales refer to the additional sales generated as a result of a promotional effort, distinguishing them from the base sales that would have occurred without any promotional influence. By subtracting the promoted sales from the incremental sales, you can isolate the additional volume that can be attributed directly to the subsidy provided by the promotion.

This calculation is essential for understanding the effectiveness of a promotional effort or subsidy, as it helps to measure the true impact of such initiatives on overall sales performance. Because the focus is on capturing the lift provided by the promotion above what's expected from regular buying patterns, aligning with incremental sales best illustrates the relationship that defines subsidized volume.

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Base sales

Volume sales

Cash sales

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