how do you forecast revenues for new products?
how do you forecast revenues for new products?
Homework Answers
Soltion:
Forecasting revenue for the new products:
Have to indulge with various departments and ask them to plan for forcasting process until demand increases.
Do market research, test marketing, feedback from the buyers and then on the basis of assumptions like repeat buyers, timings of purchase, number of customers.
Based on geographical locations, determine the price of the product. Flexible time periods for the pricing of the product.
Loading stocks of new product in the warehouse or godown, if the demand is very huge versus the expectations.
Studying about the competitors, what went wrong when they tried to launch similar category of the product.
Forecasting also the break even or else cut the losses.
Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $60,000 2...
Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $60,000 2 45,000 3 30,000 4 10,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment. a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are...
You are forecasting cash flows for a new investment. You forecast working capital needs as a percentage...
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Revenues Expenses are generated by a new fad product are forecast as follows: Year Revenues 1...
Revenues Expenses are generated by a new fad product are forecast as follows: Year Revenues 1 $65,000 2 $50,000 3 $40,000 4 $30,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment. Required: a. What is the initial investment in the product? Remember working capital. b. If the plant...
Revenues generated by a new fad product are forecast as follows: Year Revenues $60,000 30,000 20,000...
Revenues generated by a new fad product are forecast as follows: Year Revenues $60,000 30,000 20,000 10,000 m Thereafter 0 Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year. The product requires an immediate investment of $54,000 in plant and equipment. Required: a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over...
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Do you consider yourself an "early adopter" when it comes to trying out new products or...
Do you consider yourself an "early adopter" when it comes to trying out new products or new fashions, or do you tend to take a wait-and-see attitude? How does your attitude toward new products and new ideas influence your decision-making as a consumer?
How do you distinguish between revenues and cost functions of a business?
How do you distinguish between revenues and cost functions of a business?
When you are using exponential smoothing equation, how do you get the first forecast value when...
When you are using exponential smoothing equation, how do you get the first forecast value when one is not provided?
Revenues generated by a new fad product are forecast as follows Revenues $50,000 20,000 10,000 5,e00 Year 1 2 3 T...
Revenues generated by a new fad product are forecast as follows Revenues $50,000 20,000 10,000 5,e00 Year 1 2 3 Thereafter Expenses are expected to be 60 % of revenues, and working capital required in each year is expected to be 20 % of revenues in the following year. The product requires an immediate investment of $52,000 in plant and equipment a. What is the initial investment in the product? Remember working capital. ces Initial investment 62,000 b. If the...
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Describe in detail how you created a forecast of demand to guide your purchasing, hiring, and production scheduling. Obviously you do not have past demand data, but explain what information you do have, and how you used the available information to form an action plan. Sources of information include the market research desk, AND the contracts available to you for bidding. Which pieces of information were the most useful to you? How did you combine your information into a forecast...
Revenues generated by a new fad product are forecast as follows: Year Revenues $60,000 30,000 20,000 10,000 m Thereafter 0 Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year. The product requires an immediate investment of $54,000 in plant and equipment. Required: a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over...
Revenues generated by a new fad product are forecast as follows Revenues $50,000 20,000 10,000 5,e00 Year 1 2 3 Thereafter Expenses are expected to be 60 % of revenues, and working capital required in each year is expected to be 20 % of revenues in the following year. The product requires an immediate investment of $52,000 in plant and equipment a. What is the initial investment in the product? Remember working capital. ces Initial investment 62,000 b. If the...
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