FNSACC503

Your company, Apollo, operates in the manufacturing industry, with a market leading product called Rover.

This product currently brings in a quarter of the organisation's revenue and is responsible for a third of the company's expenditure.

A new company has come onto the scene with an innovative product that will dominate the market andresult in the loss of all Sales of Rover.

The company's total revenue is $1,200,000

The company's total expenses are $1,000,000

What impact will the loss of Rover's sales have on Apollo's revenue forecast, expense budget, and bottom line?

I have answered the questions as, but believe I am missing something?

The new company that has introduced an innovative product will dominate the market and is expected to eliminate the market share for rovers which currently receives a quarter of revenue and are responsible for a third of expenditures. It is important to revisit the revenue forecast and expenses budget, if not the new company will lead the market actions which will decrease the revenue forecast and increase the expense budget.Based upon the original revenue assumptions were forecasted at $1,200,000 and total expense assumptions added to $1,000,000, then the financial position will be worse and Apollo may face loses within the market for Rover.Revenue

Budget Rover 1,200,000 / 4 = $300,000

Expense Budget Rover 1,000,000/ 3 = $333,333

Revenue forecast decrease = $300,000

Expense budget decrease = $333,000

The financial performance will increase $33,000