• The projected revenues for the first four year are as follows prepare the spreadsheet
• ABC Corporation predicts the following to take place over the next five years:
• ABC will sell 10,000 units at $100 per unit in its first year of operation
• Unit sales will increase 5% per year for three years
• Unit prices will increase 2% per year for three years.
• Please note that we must project both the expected unit sales increase and the expected price increase because additional units will need addition costs that vary with the number of units, costs like materials and labor. While price increases will not cause total variable cost to increase.