Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Evelyn's current project is to forecast the next five year's revenue for her firm's consulting practice. Over the past three years, the firm has

6. Evelyn's current project is to forecast the next five year's revenue for her firm's consulting practice. Over the past three years, the firm has raised hourly prices a total of 25% and the number of hours it has sold, after adjusting for non-price factors, has gone down 15%. She expects this relationship of price and demand to hold true over the next 5 years. This year, the firm will sell 10,000 hours at an average of $150 per hour. She has decided to base her forecast on raising the hourly rate 8% in each of the next five years. In addition, she plans to raise the marketing budget enough so that the firm will sell 250 more hours each year than it would achieve without this incremental marketing budget increase. With these assumptions, the firm's revenue in year 5 will be what? Please solve in excel only

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

World Economic And Social Survey 2012 In Search Of New Development Finance

Authors: United Nations Department Of Economic And Social Affairs

1st Edition

9210555112, 9789210555111

More Books

Students also viewed these Economics questions

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago

Question

=+5. What is your impression of the Carbon Principles?

Answered: 1 week ago