Question

Coronado Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Sharon Lee, the company's sales manager, prepared the following sales forecast for 2022. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices. Sales price 1st quarter: $1,250, 2nd quarter: $240, 3rd quarter: $270, 4th quarter: $310 for acoustic guitar sales. Electric guitar sales 1st quarter: $2,100, 2nd quarter: $400, 3rd quarter: $350, 4th quarter: $320.

Answer 1

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

Step-by-step explanation:

The question presented by the student concerns Coronado Enterprises, a boutique guitar manufacturer, and their sales forecast for acoustic and electric guitars for the year 2022.

Sharon Lee, the company's sales manager, has prepared this forecast by incorporating expected increases in raw materials, which is reflected in the increased sales prices for the different quarters.

To analyze the sales forecast, one would likely look at the price trends over the quarters, understand the seasonal impacts on sales, and consider how the changes in raw material costs could affect the company's profit margins.

It is important to track these sales forecasts as they help the company in planning production, budgeting, and aligning business strategy with market expectations. The change in prices quarter-over-quarter suggests a strategic approach by Coronado Enterprises to adjust their pricing in response to their cost and, potentially, demand fluctuations.