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Real-Life Math

This morning you received a memo from Valerie, your co-worker. She wants you to help prepare some estimates for a big client. This client makes a very popular brand of soft drink. With the holidays coming, they need to know three things:

  • When to start selling their beverage with holiday packaging and artwork
  • How many cans they need to make with a special design
  • How many cases per day they will sell

Since your company has been doing business with this client for almost 10 years, you can look up some basic information on your computer database. Here is what you find:

  • Last year's figures were 125,000 cases sold (12 cans each)
  • First shipment was Nov. 20; last one Dec. 30
  • 7,300 cases were returned by stores in January
  • Historically, there has never been more than a 10 percent increase in sales in one year

You also find some interesting data about the way people shop:

  • Almost all holiday parties and get-togethers happen from Dec. 1 to Dec. 31.
  • Over the last three years, people have been buying these special holiday design soft drinks as collectors' items over and above what they buy to drink. This has gone up steadily by 5 percent per year.
  • The closest competition always starts selling their holiday soft drinks during the last week of November.

Richard Evans is quick to point out that you don't need to be a math expert; however, you do need solid math skills.

Start with last year's figures and assume sales start and stop on the same days as last year. The only increases will be for collectors and the 10 percent historical maximum. This will give you the most conservative estimate.

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.