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7 March, 19:40

Cake is a product of the Chester company which is primarily sold in the Americas Budget segment. Chester starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 1,207,141 units of Cake in the Americas region are sold in the Americas Budget segment. If the competitive environment remains unchanged what will be the Cake's demand next year? Growth % for Budget America is 5%.

1,267,498

1,840,890

2,534,997

1,207,141

+5
Answers (1)
  1. 7 March, 21:18
    0
    Cake demand next year=1,267,498 units

    Explanation:

    Y=I+G

    where;

    Y=cake demand next year

    I=initial demand

    G=growth demand

    Meaning;

    Cake demand next year=Initial demand+growth demand

    where;

    Initial demand=1,207,141 units

    growth demand=5% of initial demand

    growth demand = (5/100) * 1,207,141=60,357.05 units

    replacing;

    Cake demand next year=1,207,141+60,357.05=1,267,498.05

    Cake demand next year=1,267,498.05 units rounded off to the nearest unit=1,267,498 units
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