Question
Pomona Equipment Company is estimating Market Sales Potential (Units & Dollars) in 2023 related to special tools, and conducting Sales Forecast (Units & Dollars) in
Pomona Equipment Company is estimating Market Sales Potential (Units & Dollars) in 2023 related to special tools, and conducting Sales Forecast (Units & Dollars) in 2023 for its newly developed special tool. The average unit of this special tool in the market is expected to sell at $5. There are three groups of buyers that Pomona Equipment Company is paying attention to:
- Group 1: Southern California Male population aged between 18~24 years; 30% of this population group is expected to purchase this special tool; Average consumption per person per year is 3 units.
- Group 2: Southern California Male population aged between 25~44 years; 20% of this population group is expected to purchase this special tool; Average consumption per person per year is 2 units.
- Group 3: Southern California Female population aged between 18~24 years; 10% of this population group is expected to purchase this special tool; Average consumption per person per year is 1 unit.
- Pomona Equipment Companys Info: Its own target market: 40% of the potential buyers described above; Communication/Distribution coverage: 50% of the potential buyers described above; Special tool price: $5/unit.
Tips for Solutions: Use the most recent information of the provided Census table, and take gender ratio and population growth rates into your computations.
Tips for Solutions: Do Simple linear trend prediction to estimate the future population for each group.
Southern California Census: Population by Sex and Selected Age Groups: 2000 and 2010
Note: No Census data available for year 2020. Most recent data reported year is 2010.
| Sex and Selected Age groups | 2000 | 2010 | Change, 2000 to 2010 | |||
| Number | Percent | Number | Percent | Number | Percent | |
| Total Population | 2,500,000 | 100.00% | 3,000,000 | 100.00% | 500,000 | 20% |
| Sex | ||||||
| Men | 1,250,000 | 50.00% | 1,500,000 | 50.00% | 250,000 | 20.00% |
| Women | 1,250,000 | 50.00% | 1,500,000 | 50.00% | 250,000 | 20.00% |
| Selected Age Groups | ||||||
| Under 5 years | 100,000 | 4% | 110,000 | 4% | 10,000 | 10% |
| 5 to 17 years | 500,000 | 20% | 550,000 | 17% | 50,000 | 10% |
| 18 to 24 years | 300,000 | 12% | 360,000 | 12% | 60,000 | 20% |
| 25 to 44 years | 800,000 | 32% | 960,000 | 32% | 160,000 | 20% |
| 45 to 64 years | 400,000 | 16% | 500,000 | 17% | 100,000 | 25% |
| 65 years and over | 400,000 | 16% | 520,000 | 17% | 120,000 | 30% |
3.2) Estimate Pomona Equipment Companys sales forecast (Units and Dollars) in 2023 related to its special tool. (4pts)
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
125972266X, 9781259722660
