Alfresco Ltd manufactures air-conditioning units designed for apartment use. The company markets this line in two geographic areas, one with a humid climate and the other with a dry climate. Approximately 60% of all new apartment blocks in the two areas will have an individual air-conditioner installed in each apartment. The company has also projected that 5% of the existing apartments will install new individual air-conditioners to improve existing systems or replace old ones that cannot be repaired. Based on past experience, Alfresco Ltd expects to capture 30% of the new apartment block construction market and 10% of the replacement market.

The company sells two models of air-conditioners — the standard and the deluxe, a more energy-efficient unit. Builders will use the standard model in 60% of the apartments they construct and the deluxe model in 40%. When an existing block installs new air-conditioners, it will use the standard model in 60% of the apartments and the deluxe model in 40%.

The other information available is below.

Required Prepare a sales forecast for Alfresco Ltd by market area.

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Number of apartments to be constructed Number of existing apartments Selling price standard Selling price deluxe Humid climate Dry climate 4250 50 000 5 090 40 000 $1350 $1 830 $950 $1 400