Question

Sales forecast based on external data.  Raspberry Phones uses external data to forecast the coming​ year's sales. The company has 7.5 % of all​ new-phone sales in the United States and 5.6 % of all​ replacement-phone sales. Industry forecasts predict 18.9 million​ new-phone buyers and 31.8 million​ replacement-phone buyers in 2014. If the average Raspberry phone costs ​$84.05​, what sales revenues is the company forecasting for​ 2014?

Answer 1

Company forecast depends on percentages on industry forecast by a multiplication of average cost.

Number of phones = New phones + replacement phones

                                    = (18,900,000 × 7.5%) + (31,800,000 × 5.6%)

                                    = 1,417,500 + 1,780,800

                                    = 3,198,300

Forecasted revenue = Number of phones × Average cost

                                    = 3,198,300 × $84.05

                                    = $268,817,115 (Answer)