Calculating Revenue

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By the due date assigned, respond to the following in the Discussion Area below:

Before identifying costs in a new business, it is necessary to calculate revenue. All costs will be based on your anticipated revenue because costs are generated based on what it takes to produce the product for sale. This module you are going to think about your new business and determine what the first year in sales looks like.

  • Describe what product or service you will be selling.
  • How much will you charge for your product or service?
  • How many units of the product or service do you anticipate being able to sell over the first year?

This is a good time to dream, but also to be realistic. The beginning period in any company is challenging and realistic planning is crucial for success. Based on your estimates, build a table, in Microsoft Excel, showing the quantities sold of each item or service, the dollar amount charged for each, and the total anticipated revenue. Your table should reflect sales by the month and then an annual total. Include your table as an attachment to your initial discussion response.

Remember, the information you gather in this assignment will contribute to your final project due in Module 5.

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