Starbucks will spend $2 million marketing its newest latte drink. It expects to sell 15 million of these lattes over the next year. These 15 million lattes are a _____________ for Starbucks.
A) sales forecast
B) regression analysis
C) breakdown approach
D) cycle analysis
E) buildup approach

Question

Quizplus · Accepted Answer

A sales forecast is an estimate of future sales revenue for a particular product or service. In this case, Starbucks has estimated that it will sell 15 million of its newest latte drink over the next year. The $2 million marketing spend is likely based on this sales forecast, which makes it a crucial factor in determining the success of the new latte.

Starbucks Will Spend $2 Million Marketing Its Newest Latte Drink