• They need to come up with a sales forecast putting in mind assumptions such as the future economic conditions based on whether there will be more demand for the product and if which may lead to an increase in sales revenue as well as if there is a decline in demand of the product which may lead to a decline in revenues for the company. An increase in demand also means that Jim and Mason will have to employ more stuff to meet the customers demand on time and this will lead to an increase in expenditure for the company because there will be more salaries that need to be paid. Increase in sales revenue will mean that investment in fixed assets will also increase and a decline will mean that the investments in the fixed assets will also decline. Inflation is another economic condition that Jim and Mason must put into consideration. Inflation refers to a situation whereby there is too much currency in circulation. This will affect the company in such a way that they will incure more......
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Approximate Word Count: 2157
Approximate Pages: 9 (260 words per double-spaced page) |