You are trying to forecast coffee sales for the holiday season. You sold 1,500 cups of coffee during the holidays last year, but your overall sales for coffee this year are tracking 20% behind last year. If you have limited promotional dollars, what is a realistic total demand forecast for coffee sales during this holiday season?

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Business

Eva

21 May, 19:03

You are trying to forecast coffee sales for the holiday season. You sold 1,500 cups of coffee during the holidays last year, but your overall sales for coffee this year are tracking 20% behind last year. If you have limited promotional dollars, what is a realistic total demand forecast for coffee sales during this holiday season?

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Seth Beltran · Answer 1

1,200 cups of coffee. Since your sales has been 20% lower than last year and you don't have any significant funds to additional advertising or promotions, you can expect your holiday sales to also be 20% lower than last year. So you expect to sell 100% - 20% = 80% of many coffee sales. So 0.80 * 1500 = 1200 So a realistic expectation for this year is 1,200 cups of coffee.