Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedSales 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions