Ask Question
11 July, 13:41

Requirements: Develop a ten-year sales projection assuming the growth as below:

a. 1% for 2nd year

b. 3% for 3rd to 5th year

c. 8% for 6th to 10th year

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Number of units

Unit dollar

Sales

+1
Answers (1)
  1. 11 July, 16:32
    0
    Ten Year Sales Projection

    Year - Unit Dollar - Sales

    Year 1 - 10,000 - $4 - $40,000

    Year 2 - 10,100 - $4 - $40,400

    Year 3 - 10,403 - $4 - $41,612

    Year 4 - 10,715 - $4 - $42,860

    Year 5 - 11,037 - $4 - $44,148

    Year 6 - 11,920 - $4 - $47,680

    Year 7 - 12,873 - $4 - $51,492

    Year 8 - 13,903 - $4 - $55,612

    Year 9 - 15,015 - $4 - $60,060

    Year 10 - 16,216 - $4 - $64,864

    Explanation:

    Assumptions:

    Selling Price Per unit (unit dollar) = $4

    Selling Price remains constant from Year 1 to 10

    Year 1 Volume (number of units) = 10,000

    Year 1 Sales ($) = $40,000

    Volume Year 1 to 10 =

    Yr 1 - 10,000, Yr 2 - (10,000 + (1% x 10,000)) = 10,100, Yr 3 - (10,100 + (3% x 10,100)) = 10,403, Yr 4 - (10,403 + (3% x 10,403)) = 10,715, Yr 5 - (10,715 + (3% x 10,715)) = 11,037, Yr 6 - (11,037 + (8% x 11,037)) = 11,920, Yr 7 - (11,920 + (8% x 11,920)) = 12,873, Yr 8 - (12,873 + (8% x 12,873)) = 13,903, Yr 9 - (13,903 + (8% x 13,903)) = 15,015, Yr 10 - (15,015 + (8% x 15,015)) = 16,216.

    Unit Sales Year 1 to 10 = $4

    Sales Year 1 to 10 =

    Yr 1 - $40,000. Yr 2 - $40,400. Yr 3 - $41,612. Yr 4 - $42,860. Yr 5 - $44,148. Yr 6 - $47,680. Yr 7 - $51,492. Yr 8 - $55,612. Yr 9 - $60,060. Yr 10 - $64,864
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Requirements: Develop a ten-year sales projection assuming the growth as below: a. 1% for 2nd year b. 3% for 3rd to 5th year c. 8% for 6th ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers