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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 sales forecast multiplies unit forecasts by unit cost forecasts to calculate projected cost of sales. This example shows two months of a forecast that actually includes 12 months and then annual projections for a two-year period. The first year column totals the sales of the first 12 months.