Forecasting sales to hire enough employees and buy the right amount of product can be one of the most difficult tasks in

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answerhappygod
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Forecasting sales to hire enough employees and buy the right amount of product can be one of the most difficult tasks in

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Forecasting sales to hire enough employees and buy the right
amount of product can be one of the most difficult tasks in running
a business. At the beginning of the simulation, the only clue
you'll have about potential demand is a similar business that was
selling about 1,000 cups a day. Whether your coffee reaches or
exceeds that amount will depend on your ability to anticipate and
manage growth.
Where do you expect the company to be a year from
now?
A) Suppose sales are well below 1,000 cups per day. What is your
projected net cash flow if you expect to sell 300 medium cups of
coffee per day (M-F) at $3.50 a cup and have expenses of $6,000 for
the week?
B) What decisions can you make to increase demand in the early
stages of your business? What other decisions will you need to
consider to manage growth?
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