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Anonymous A
on Jan 24, 2020
Global
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Why using sales from the previous year (590) to predict profit and not the sales planning for the upcoming year (501.5)?

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Luca
Coach
on Jan 24, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello,

The reason is simply because the "Share of sales" data are referred to the sales of Y3.

If you eliminate a specificate part of the sales (e.g. products <5€) you can not assume that share of sales of products will be the same.

Does it make sense?

Luca

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