1. The marketing department is forecasting the following annual sales: For the year ended December 31, 2019: 9,000 units at $1,000 each* For the year ended December 31, 2020: 10,000 units at $1,000 each For the year ended December 31, 2021: 15,000 units at $1,000 each *Expected sales for the year ended December 31, 2019 were based on actual sales to date and budgeted sales for the duration of the year. 2. Peak months for sales generally correspond with summer weather and gift-giving holidays. History shows that January is the slowest month, with only 1% of annual sales, followed closely behind by Feb-April with 2% of annual sales for each month. Sales spike during summer months with May, June, July, and August contributing 12%, 15%, 12%, and 10% of annual sales respectively. With the back-to-school focus in September, there is a significant dip in camera drone sales to 3% of annual sales. As Christmas shopping picks up momentum, winter sales increase to 8% in October, 13% in November, and then peak at 20% in December. This pattern of sales is not expected to change in the next two years.

Manufacturing Costs and Inventory

3. Each camera drones spends a total of 3.5 hours in production.

4. Due to the highly technical nature of CamDrones manufacturing process, CamDrones direct labour rate has averaged $30.00 per hour for 2019. This rate already includes the employers portion of employee benefits. A new collective agreement is being negotiated, with a 3% pay increase anticipated effective January 1, 2020.