The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
- We assume a slow-growth economy, recovering from an economic recession
- We assume of course that there are no unforeseen changes in technology to make products immediately obsolete.
Annual Growth Rate Percentage. We anticipate a modest growth over the coming years. The financials account for the following growth projection:
- Year 1: 6%
- Year 2: 5%
- Year 3: 4%
Weekly Sales Variance
The weekends will typically be our best sales day for the week. The sales variances for the other days are represented by the percentage relative to the weekends. Therefore our sales will vary as follow:
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