After Management Develops the Product Concept and Marketing Strategy, It

question 25

Essay

After management develops the product concept and marketing strategy, it can evaluate the proposal's business attractiveness. Management needs to prepare sales, costs, and profit potentials. The first step is to estimate total sales. Describe what is included in estimating total sales.

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Definitions:

Demand Schedule

A demand schedule is a table that shows the quantity of goods or services demanded at different price levels.

TR

Total Revenue, which is the total income generated from the sale of goods or services.

TC

Total cost, which is the sum of all costs incurred by a firm in the production of goods or services.

Economic Profit

The variance between sales income and the alternative costs of the inputs needed.