Profit (P) = Buying Units (BU) x % Aware (A) x % Trial (T) x % Availability (AV) x Measure of Repeat (RP) x Product Gross Margin per unit (GM)

Scenario #2:Samsung is selling a new version of their Samsung tablet computer into the Canadian market - need to forecast the following:

2. Market Potential (Buying Units)
4. # of forecasted units to be sold over a 12 month period including repeat sales
6. Expected gross margin $ based on 12 month period unit sales including repeat sales

Calculation inputs:

• Market Potential: Canadian Population is 35,344,962; 12% of which have indicated they are in the market to purchase a tablet computer (target market); 55% of the customers that indicated they will purchase are willing to spend up to $550 for a new tablet.
• Promotional activities will ensure that 81% of target market is aware of the product
• Current distribution agreements will ensure 88% availability of the product within the target geographic regions
• Buyer intention survey results indicate that 13% of target customers definitely plan to purchase the new Samsung tablet; 17% probably with purchase; and 65% fall into the maybe purchase category
• % of customers that are forecasted to purchase that will likely or definitely purchase a 2^nd Samsung Tablet unit for work or cottage, or as a gift (within the same 12 month period)= 3%
• Selling price = $499.99 per unit sold
• Costs per unit: $166 manufacturing cost; $85 sales, service and promotional costs; and $59 distribution and after sale servicing costs