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There is a penalty for pricing your product above the price range for this year.

Every dollar above the price

range will lose 20% demand for your product. At $5.00 above the price range, dem
and will fall to zero.
price l
promo Budget inc
sales budget inc >> Inc bench mark prediction.
esearch the competitive environment in the Courier. Display the Marketing worksh
Enter decisions for Price, Promotion and Sales Budgets. Observe the decision imp
upon the benchmark forecast. Develop a worst case estimate for demand.
Enter your worst case estimate for in the sales forecast. Save the decisions.
1) you can schedule up to double your first shift capacity for your production s
30% contribution margin or higher in order to make a nice profit.
Remember to keep an eye on your contribution margins as you change your prices i
n marketing.
2) A high second shift percentage is your best indicator that it is time to star
t thinking about buying more capacity to keep up with growing demand.
Estimate peak demand for each product for this year and next year. Examine unit
costs and margins.
Display the Production worksheet. Increase or decrease capacity as required. Inc
rease automation as required.
Observe the net cost of the investment. Display the Finance worksheet. Fund the
investment with a mix of stock issues, bond issues, and depreciation.
Save the decisions.
Examine the Proforma Income Statement.
Examine the Proforma Balance Sheet.
Display the Finance worksheet.
Issue or repurchase stock as required.
Issue or repay bonds as required.
Issue short term debt as required. Issue a dividend as required. Save the decisi
New product
Research the opportunity in the segment in the Courier.
Select appropriate product attributes - Performance, Size, MTBF. Display the R&D
Enter the product attributes. Note the R&D completion date. Display the Producti
on worksheet.
Order capacity and automation (optionally, wait a year).
Display the Finance worksheet.
Fund the plant with stock and bond issues. Save the decisions.