Use the information above to answer the questions below.

Question:

1. Assuming that all revenues come from the sales of a single product, calculate average unit prices in 2021 and in 2022.

2. Calculate percentage change in revenues from 2021 to 2022.

3. Calculate gross profit margins for 2021 and 2022.

4. Calculate operating profit margins for 2021 and 2022.

5. Calculate ROS for 2021 and 2022.

6. Based on your calculations, what would have caused changes in ROS?

7. Calculate units market size in 2021 and 2022.

8. It is expected that market (in units) will grow 10% in 2023. Calculate units market size in 2023.

9. Research suggests that customers' purchase intentions for W's products in 2023 are at 28%. Forecast W's unit sales in 2023.

10. Assuming that in 2023 W's unit sales will keep growing at the same rate as in 2022, forecast W's unit sales in 2023.

 

Transcribed Image Text:

Firm W 2022 Revenues Unit Sales $ 5,875,000 25,000 $ Market Share 24% Unit market share 26% Gross Profit Net Income $1,880,000 Operating Profit $1,351,250 $881,250 $ 5,957,000 23,000 26% 26% $2,084,950 $1,548,820 $1,072,260 2021 Firm W 2022 Revenues Unit Sales $ 5,875,000 25,000 $ Market Share 24% Unit market share 26% Gross Profit Net Income $1,880,000 Operating Profit $1,351,250 $881,250 $ 5,957,000 23,000 26% 26% $2,084,950 $1,548,820 $1,072,260 2021