In the Workspace, first load the projected demand of each brand (number of units that you expect to sell this quarter across all markets) together with its average price. With this information, you can then calculate your projected profit statement for the division.

Your accountants will fill in the costs associated with your decisions and estimate revenues and profits.

Study your revenues, expenses, and projected profits. You are expected to lose money during this first quarter of sales; there are just too many unknowns at this point in the lifecycle of your company and market niche. This is why Corporate Headquarters has given you the investment money.

Feel free to change the projected demand for individual brands and rerun your financial projections. You can do so by changing the 'Percent of forecasted demand' drop down in the Workspace. You will want to run several different scenarios to see how your financial position changes with different demand estimates.

Finally, prepare a pessimistic forecast by cutting demand in half and leaving all decisions as they are. What impact will this reduced demand have on all of your key performance criteria.

Projected demand per quarter MISCELLANEOUS INCOME AND EXPENSES \begin{tabular}{l|rrr} \hline Other Income & 0 & 0 & 0 \\ - Other Expenses & 0 & 0 & 0 \\ - Research and Development Costs & 0 & 0 & 0 \\ - Set Up Costs for New Stores & 0 & 496,000 & 118,000 \\ \hline = Net Profit for Division & 88,000 & 526,000 & 397,274 \\ \hline Cumulative Net Profit for Division & 88,000 & 614,000 & 1,011,274 \end{tabular} Pro Forma Profitability of Marketing Division Projected demand per quarter MISCELLANEOUS INCOME AND EXPENSES \begin{tabular}{l|rrr} \hline Other Income & 0 & 0 & 0 \\ - Other Expenses & 0 & 0 & 0 \\ - Research and Development Costs & 0 & 0 & 0 \\ - Set Up Costs for New Stores & 0 & 496,000 & 118,000 \\ \hline = Net Profit for Division & 88,000 & 526,000 & 397,274 \\ \hline Cumulative Net Profit for Division & 88,000 & 614,000 & 1,011,274 \end{tabular} Pro Forma Profitability of Marketing Division