To calculate the Compound Annual Growth Rate (CAGR) for Product A and Product B from 2023 to 2030, we can follow these steps:

1. Calculate Company A's 2023 Revenue:

The Year-over-Year (YoY) growth rate is 15.5%. To calculate the revenue for 2023, we assume the revenue provided (1.4 billion USD) is for 2022.

$\text{2023 Revenue} = 1.4 \, \text{billion USD} \times (1 + \frac{15.5}{100})$

Let me calculate that for you.

2. Determine the Revenue Contribution of Product A and Product B for 2023:

• Product A: 77.5% of the 2023 total revenue
• Product B: 18.5% of the 2023 total revenue

3. Determine the Revenue Contribution for 2030:

• Product A is expected to contribute 63% of the total revenue by 2030.
• Product B is expected to contribute 30% of the total revenue by 2030.

4. Calculate the CAGR for Product A and Product B:

The formula for CAGR is:

$\text{CAGR} = \left( \frac{\text{Ending Value}}{\text{Starting Value}} \right)^\frac{1}{n} - 1$

Where:

• Ending Value: Product's contribution to total revenue in 2030.
• Starting Value: Product's contribution to total revenue in 2023.
• n: The number of years (2030 - 2023 = 7 years).

Let's now compute the values step by step.### 1. Revenue for 2023: The total revenue for 2023 is 1.617 billion USD.

2. CAGR for Product A (2023-2030):

• The CAGR for Product A is approximately -2.92%. This reflects a decline in its contribution to overall revenue from 77.5% in 2023 to 63% in 2030.

3. CAGR for Product B (2023-2030):

• The CAGR for Product B is approximately 7.15%. This indicates growth in its contribution from 18.5% in 2023 to 30% in 2030.

Would you like more details or have any questions?

Here are 5 related questions:

1. How can we calculate the projected total revenue in 2030?
2. What are the implications of a negative CAGR for Product A?
3. How would different YoY growth rates impact the 2023 revenue?
4. What other factors might influence Product A and B's future contributions?
5. How is CAGR used in business planning for product lines?

Tip: A negative CAGR means a decline over time, which might be expected if a product's market share is shrinking.