To complete your report on the feasibility and profitability of exporting men’s shirts, the marketing manager has asked you to prepare a sales forecast from 2020 to 2024, using the initial order of 200,000 units as demand for 2020 and the FOB Manila price per unit (FCL). You have been asked to further assume that the company expects demand to increase by 2.5% every year and that the inflation rate per annum is 4%.

Table 1 Manufacturing Details
Direct Materials (for 200,000 units)	30,000,000	Php/yr
Wage (per worker)	520	Php/day
Laborers	25	Workers
Working Days	264	days/yr
Factory Overhead	25%	of direct labor cost
Total Quantity (50 pieces/box)	200,000	pcs/yr

Table 2 Packing Description:
Carton Dimensions (per box)	80 x 50 x 40	cms
Cubic Meter (per box)	0.16	cbm
Gross Weight (per box)	15	Kgs

Table 3 Trucking:
FCL (1 x 40' container van = 67.7 cbm capacity)	15,000	Php/trip
LCL (1 delivery van = 40 cbm capacity)	15,000	Php/trip

Table 4 Arrastre and Wharfage:
Arrastre (FCL)	7,500	Php/CV
Arrastre (LCL)	150	Php/cbm
Wharfage (FCL)	800	Php/CV
Wharfage (LCL)	40	Php/cbm

Table 5 Other Information:
Documentation Processing	1500	Php
Loading Expenses	12,000	Php
Miscellaneous Expenses (BL issuance, advance manifest, etc)	500	US$
Agent's Commission	0.75	US$/pc
Mark-up	35%	of total FOB cost
Exchange Rate	48	Php=US$1

Sales Projection

Year	Projected Sales Volume (units)	FOB Manila Price/Unit (Php)	Projected Sales Value (Php)
2020
2021
2022
2023
2024

Answer rating: 100% (QA)

Table 1 Manufacturing Details The first step in calculating the sales forecast is to determine the cost of manufacturing the shirts To do this we need to factor in direct materials wages laborers work... View the full answer