BU121 Lecture Notes - Lecture 9: Sensitivity Analysis, Fixed Cost, Income Statement
Document Summary
In next week"s lab, we are going to be doing a lab that is very difficult case. It"s a senior level case but the whole point is how you would go about doing it. Without a doubt, this is the most difficult part of the product. There is no formula; projections are based on research and logic an educated guess that you can defend. Understand that market potential (how big the market is) is not a sales forecast: forecast depends on the plan scalability. Can you actually take on a greater level of demand without changing your model entirely investing a lot more money. Top-down forecasting (breakdown: what can you actually service, not really ideal, here is the entire market, break it down to a market that is feasible for me, market potentials is not just the number of households. Do people care about the benefits of a solar powered lawn mower: still not a sales forecast.
