Create a spreadsheet model to estimate costs

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Reference no: EM132984877

You are going to sell Frisboids (a kind of flying disc that can be used inside an apartment without damaging things) into Lithuania. Based on market research, you estimate that the market for Frisboids in that region will be 50,000 units for 2021, 60,000 units for 2022, and 70,000 units for 2023.

You project that your wholesale selling price will be €8 per Frisboid for 2021-2023. The variable cost for making each Frisboid in 2021 will be €3.70, and this cost will grow by 5% per year. The startup cost for entering the market (including opening an office, hiring sales staff, paying licensing fees, etc.) is estimated at €100,000 payable in 2021.

Problem 1: Based on these estimates and projections, create a spreadsheet model to estimate costs, revenues, and profits for 2021, 2022, and 2023.

Reference no: EM132984877

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