Sales Forecast
If we are able to distribute our product through existing distributors, it will provide us a significant financial advantage, as well as the ability to meet the quick increase in demand for our product.
Beginning with an initial monthly sale of $1,250 for our day care soap product (CHILDassure), we predict sales will increase by 45% per month for the first year. We then calculate a growth rate of 90% yearly. Cost of Goods Sold is approximately 47% of sales. However, COGS grows at a yearly rate of 88%, which is less than the sales growth rate in order to represent the economies of scale that we hope to achieve as our operations grows.