Coronado Enterprises Sales Forecast for 2022

Coronado Enterprises Sales Forecast for 2022

Coronado Enterprises is a boutique guitar manufacturer that produces acoustic and electric guitars for professional musicians. Sharon Lee, the company's sales manager, has prepared the sales forecast for 2022. The forecast includes a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price to account for anticipated raw materials price hikes.

Sales Forecast Prices

Acoustic guitar sales price: First quarter: $1,250 Second quarter: $1,240 Third quarter: $1,270 Fourth quarter: $1,310

Electric guitar sales price: First quarter: $2,100 Second quarter: $2,400 Third quarter: $2,350 Fourth quarter: $2,320

Final answer:

A student asked about Coronado Enterprises' sales forecast for guitars, which included price increases to accommodate raw material costs. This forecast is crucial for production planning and business strategy, considering market conditions and cost adjustments.

Explanation:

The student's inquiry pertains to Coronado Enterprises, a boutique guitar manufacturer, and their sales forecast for 2022 for both acoustic and electric guitars.

Sharon Lee, the sales manager, has factored in anticipated increases in raw materials prices when preparing the forecast, leading to higher sales prices in each quarter.

Examining the sales forecast involves analyzing price trends, understanding seasonal sales impacts, and assessing how changes in raw material costs could affect the company's profit margins.

Tracking these sales forecasts is essential for production planning, budgeting, and aligning business strategies with market expectations. The quarterly price adjustments indicate a strategic response by Coronado Enterprises to cost and potential demand fluctuations.