?

LA8 # 1
keg|ons Cut|ets Lxpected
sa|es
Actua|
Sa|es
Macro sa|es var|ance
lslamabad 23 13300 12130 10
8awalplndl 20 10800 9720 10
Lahore 30 27000 24300 10
lalsalabad 13 8100 7290 10
karachl 73 40300 36430 10
eshawar 13 8100 7290 10
1ota| 200 108000 97200 10

We assume LhaL each monLh we wlll place 43 unlLs on each ouLleL 1o flnd ouL expecLed sales we wlll use
followlng formula (nC Cl Cu1LL1S* nC Cl unl1S LACLu)*12 lL lC8 AnnuAL AcLual Sales are 90
of Lhe expecLed sales
?LA8 # 2
keg|ons Cut|ets Lxpected
sa|es
Actua|
Sa|es
Macro sa|es var|ance
lslamabad 23 14100 12831 9
8awalplndl 20 11280 10263 9
Lahore 30 28200 23662 9
lalsalabad 13 8460 7699 9
karachl 73 42300 38493 9
eshawar 13 8460 7699 9
1ota| 200 112800 102648 9

As we are new comers Lo markeL we wlll noL lncrease Lhe no of ouLleL however we wlll change Lhe
quanLlLy as per cusLomer demand So ln Lhe second year we wlll place 47 unlLs on each ouLleL AcLual
Sales are 91 of Lhe forecasLed sales
?LA8 # 3
keg|ons Cut|ets Lxpected
sa|es
Actua|
Sa|es
Macro sa|es var|ance
lslamabad 23 12900 11481 11
8awalplndl 20 10320 9183 11
Lahore 30 23800 22962 11
lalsalabad 13 7740 6889 11
karachl 73 38700 34443 11
eshawar 13 7740 6889 11
1ota| 200 103200 91848 11

We assume LhaL due Lo lnflaLlon and uslng low markeLlng budgeL ln Lhe Lhlrd year Lhe sales may decllne
So Lhe placemenL wlll be 43 unlLs on each unlL AcLual Sales wlll be 89 of Lhe expecLed sales
?LA8 # 4
keg|ons Cut|ets Lxpected
sa|es
Actua|
Sa|es
Macro sa|es var|ance
lslamabad 23 13800 12696 8
8awalplndl 20 11040 10137 8
Lahore 30 27600 23392 8
lalsalabad 13 8280 7618 8
karachl 73 41400 38088 8
eshawar 13 8280 7618 8
1ota| 200 110400 101S68 8

As we redeslgn our markeLlng sLraLegles we assume LhaL Lhe demand wlll lncrease Lo 46 unlLs on each
ouLleL AcLual Sales wlll be 92 of Lhe expecLed sales rlce wlll decrease

?LA8 # 3
keg|ons Cut|ets Lxpected
sa|es
Actua|
Sa|es
Macro sa|es var|ance
lslamabad 23 13800 12420 10
8awalplndl 20 11040 9936 10
Lahore 30 27600 24840 10
lalsalabad 13 8280 7432 10
karachl 73 41400 37260 10
eshawar 13 8280 7432 10
1ota| 200 110400 99360 10

Sales wlll be 46 unlLs on each ouLleL MarkeLlng budgeL wlll be decreased and prlce wlll be lncreased
AcLual Sales wlll be 90 of Lhe expecLed sales

1oLal lnvesLmenL
In Millions
Building
Land
Machinery
Working Capital
Marketing
Total

llxed cosL
Mllllons
u||d|ng 1
Land 2
Mach|nery 2
1ota| S

Cost per un|t 90


Sales lorecasLlng
?ears rlce () CuanLlLy (C) MarkeLlng budgeL ( v2 + v3) rof|t (2)
1 173 92700 2000000 473937S
2 170 102648 1600000 11319606
3 180 91848 1200000 1S703408
4 173 101368 1800000 12SS612
3 180 99360 1300000 1816432

lormula ( k C) C l M

Allowance (?LA8)
Allowance wlll lncrease by 0023 each
year 1he Allowance of flrsL year ls 23
1 4373
2 4673
3 34
4 36873
3 63

ears
Iorecasted
Sa|es
Actua|
Sa|es Iorecasted pr|ce
Vo|ume
Var|ance
1 108000 92700 173 2677300
2 112800 102648 170 1723840
3 103200 91848 180 2043360
4 110400 101368 173 1343600
3 110400 99360 180 1987200

lormula ( lorecasLed sales AcLual Sales) x lorecasLed rlce

ears Iorecasted
pr|ce
Actua|
r|ce
Actua| sa|es r|ce var|ance
1 173 173 92700 0
2 170 170 102648 0
3 180 180 91848 0
4 173 173 101368 0
3 180 180 99360 0

rlce varlance ( lorecasLed prlce AcLual rlce ) x AcLual Sales