Question: Client: Discountmugs.com I don't understand these instructions would you be able to guide me on what I am supposed to do? What needs to be

Client: Discountmugs.com

I don't understand these instructions would you be able to guide me on what I am supposed to do? What needs to be calculated and the formula to calculate aggregate annual demand and annual sale & demand?

Estimate/forecast the annual sales (number of units of individual mugs or cups) for each of the top 150 zip codes. Based on previous market research performed for the client, the client estimates annual sales (in units) to be 3% of the zip code population (not population density). This approach has proven reliable for this client in previous planning estimates. The client believes these will be NEW sales and thus will be additional sales generated by the new 150 franchised kiosk locations, and not detracting or cannibalizing from existing online sales from the corporate web portal.

o What is the estimated aggregate annual demand (in units) that should originate from these 150 most densely populated zip codes?

o What is the initial estimated annual demand (in units) from the first 28 franchisees?

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