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445 Basic Example 446 In the following example we have hypothesized that all drivers remain constant except that the company aggressively cuts prices to gain
445 Basic Example 446 In the following example we have hypothesized that all drivers remain constant except that the company aggressively cuts prices to gain market share. 447 Develop a basic models and apply it to forecast the current year and next year results. 448 Enter formulas in the yellow cell that complete the model. The comments to the right of each row will assist you. In the yellow boxes calculate the 'Size of Market in Units' We assumed that market continues to grow at last year's rate We assumed that the company gains share by aggressively cutting price In the yellow boxes calculate the "Units Sold by Company' In the yellow boxes calculate the 'Company Unit Growth Rate' We assumed that the company gains share by aggressively cutting price In the yellow boxes calculate the "Sales in $ ' We assumed that the 'Cost Per Unit' remains constant In the yellow boxes calculate the "Cost in \$' In the yellow boxes calculate the 'Gross Profit' 445 Basic Example 446 In the following example we have hypothesized that all drivers remain constant except that the company aggressively cuts prices to gain market share. 447 Develop a basic models and apply it to forecast the current year and next year results. 448 Enter formulas in the yellow cell that complete the model. The comments to the right of each row will assist you. In the yellow boxes calculate the 'Size of Market in Units' We assumed that market continues to grow at last year's rate We assumed that the company gains share by aggressively cutting price In the yellow boxes calculate the "Units Sold by Company' In the yellow boxes calculate the 'Company Unit Growth Rate' We assumed that the company gains share by aggressively cutting price In the yellow boxes calculate the "Sales in $ ' We assumed that the 'Cost Per Unit' remains constant In the yellow boxes calculate the "Cost in \$' In the yellow boxes calculate the 'Gross Profit
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