This goals for this stage are quite basic:

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$1.$ Estimate total sales you expect to achieve for each of the next $5$ years.

a$.$ Provide a discussion of how you determined these amounts that considers such items as the repurchase rate of existing customers, developed in Stage $2,$ and the penetration of your product into the market.$$

b$.$ Reference any similar products you considered in developing your model

$2.$ For each of the five years, create a mini$-$income statement that looks like the following:

Revenue $100\%$

Cost of Goods Sold$35\%$

Gross Margin$65\%$

Sales, General, & Administrative$50\%$

Net Profit $15\%$

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a$.$ Convert percentages into dollar amounts.

b$.$ To determine the Cost of Goods Sold percentage, research the typical COGS for your industry.$$ You may find a range of numbers, take the average amount.$$ Be sure to reference where you found the answer. Use this percentage to estimate the dollar amount.

c$.$ To determine the Sales, General, and Administrative expenses percentage, follow the same process as Part a$.$ Use this percentage to estimate the dollars in this area.