Question

Instructions: Questions 1-4 use the financial model on tab Q1-4 in the Exam Workbook. Complete the model by filling in the blank cells before answering the question below. Answers should be rounded to the nearest whole number, comma separating 000s, NOT written in currency format. So if the answer is $5,505,210.50, you would input 5,505,210. What is forecast Revenue in 2017?

Answer 1

1. The completion of the financial model with the Sales Units and Sales Revenues is as follows:

Financial Model (showing the Sales Units and Sales Revenue)

                                  2014            2015           2016          2017             2018

Sales units           200,000      210,000     237,300    272,895       297,456

Sales Revenue 9,998,000 10,497,900 11,862,627 13,642,021 14,869,825

2. The forecast revenue in 2017 is $13,642,021.

Data and Calculations:

                                              2014     2015       2016         2017       2018

Growth Rate of Units Sold:                  5%         13%           15%          9%

Sales units                       200,000    210,000  237,300  272,895  297,456

Sales Price per unit     = $49.99

Sales Revenue           9,998,000 10,497,900 11,862,627 13,642,021  14,869,825

The sales revenue = Sales Units x Sales Price per unit.

Thus, the forecast revenue in 2017 is $13,642,021.

Learn more about forecasting revenue in future years at brainly.com/question/11033682