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3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case in which sales equal 30,000 units.
The primary goal of most businesses is to increase its profitability. When establishing a target profit, you must first identify your companyâs annual sales profit, overhead budget and annual net profit. For example, you might want this yearâs sales goals to surpass last yearâs sales totals by 10 percent. Make sure your sales team can achieve this goal and keep in mind that each of your products or services might require a different approach to reach the target.