Question
Sales Forecast Practice: assume you have designed a new line of humorous birthday cards for college students. Last year there were 70 million birthday cards
Sales Forecast Practice: assume you have designed a new line of humorous birthday cards for college students. Last year there were 70 million birthday cards sold in the U.S. and that number is expected to grow by 2% per year. The average price of a birthday card was $1.50, and that price is expected to grow by 10% per year. You forecast that you can get a 1% unit market share this year, and after this year, you can increase unit sales by 30% per year after that. Your price per card will be $2.00 because of the higher quality, but you do not expect to implement any price increases over the next 5 years. DO A 5 YEAR FORECAST SPREADSHEET that includes the total industry # of cards sold, price per card, and total dollar sales for each year, starting with Last Year as a base and moving forward for Year 1 (THIS YEAR), Year 2, Year 3, Year 4 and Year 5. Also calculate your own expected # cards sold for years 1 through 5, price per card, and total dollar sales.
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