Cake is a product of the Chester company which is primarily sold in the Americas
ID: 356228 • Letter: C
Question
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
Explanation / Answer
future demand = present demand * (1+growth rate)^number of years
= 1207141 * (1+5%)
= 1267498