Business Finance Homework Help

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 sold in the U.S. and that number is expected to grow by 2% per year. The average revenue manufacturers received per birthday card last year was $2.50, and that price is expected to grow by 1% per year. You forecast that you can get a 0.5% unit market share this year, and you can increase your unit sales by 30% per year after that. Your selling price per card will be $5.00 for direct to customer sales through your website, and $2.00 for the wholesale channel (selling to card shops, drugstores, etc.) You don’t anticipate changing your prices for the foreseeable future. You estimate a 50/50 split of your unit volume between the website and wholesale channels. Create a 5 year sales forecast spreadsheet in Excel for your business: this coming year and the following four years. Include Units, Price and Revenue for each of the two channels and in total. Also include the total industry # of cards sold, price per card, and total dollar sales for each year, starting with Last Year’s base data, so you can calculate your share of the total addressable market in terms of both units and total revenues.