Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sales forecast practice: assume you have designed

Sales Forecast Practice: assume you have designed a new line of humorous birthday cards for...

80.2K

Verified Solution

Question

Accounting

imageSales Forecast Practice: assume you have designed a new line of humorous birthday cards for college students. Last year there were 70 million birthday cards sold in the U.S. and that number is expected to grow by 2% per year. The average price of a birthday card was $1.50, and that price is expected to grow by 10% per year. You forecast that you can get a 1% unit market share this year, and after this year, you can increase unit sales by 30% per year after that. Your price per card will be $2.00 because of the higher quality, but you do not expect to implement any price increases over the next 5 years. DO A 5 YEAR FORECAST SPREADSHEET that includes the total industry # of cards sold, price per card, and total dollar sales for each year, starting with Last Year as a base and moving forward for Year 1 (THIS YEAR), Year 2, Year 3, Year 4 and Year 5. Also calculate your own expected # cards sold for years 1 through 5, price per card, and total dollar sales.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students