It is necessary to forecast the total demand for the current quarter. This forecast will be used to

help plan your revenues, cost of goods, profits, and cash flows.

The key to estimating demand is to estimate the number of units each sales and service person

is likely to sell. Multiply this number by the number of people employed for the quarter to obtain

an estimate of the total demand.

FORMULA

Demand Projection $=$# of units per salesperson $$# of sales and service people employed

for the quarter.

YOUR TASK

Estimate how many units a staff member is likely to sell during this quarter.

Once you have estimated total demand, you will want to allocate this demand across the

brands that you plan to sell this quarter. These individual brand forecasts will help to refine

your thinking and financial projections.