$3$ out of $20$

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Safety Pro$-$Tech Inc. produces protective equipment. The company's primary source of revenue is from the sale of N$95$ masks. The industry has seen considerable growth over the past two years, and this has been reflected in the company's financial performance. However, competition in this market has increased and the product is now considered to be a commodity with relatively low barriers to entry.

You have been engaged to help the company forecast its revenue and plan for future growth. Management has asked for your preliminary thoughts on their internally prepared schedule which can be downloaded.

$1-$ Revenue.xlsx

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Is the pricing forecast realistic?

Yes. The forecast is realistic given the observed operational efficiency in the business.

Yes. The forecast seems conservative given the current environment for mask producers.

No$.$ The degree of pricing power is not realistic as increased competition has entered the market.

Yes. Given the historical growth in pricing, a forecast with $10\%$ to $15\%$ annual increases seems realistic.