Subject – Choosing the suitable option that would provide the company maximum financial
benefit
Comparison of financial benefits of Option A and Option B
The automobile business has decided to incorporate internet of things (IoT) technology into
its vehicles. Before finalizing the innovative option, it is necessary to conduct a critical
comparison of the available innovative options. the memo, the In financial benefits
associated with both the options has b examined and the option that een would be of higher
financial benefit for the company has been identified.
Sales Forecast
The sales forecast has been conducted identify whether Option A to or Option would B
produce better sales figure for the company. choosing the innovative option, the By
company expected showcase a solid sales turnover of connected cars the end of is to at the
forecasted period. The company would be able to grow connected cars 10.2 at % per year
for 2 years, and then the grow th of the connected cars segment would take place 25 at %
per year. could boost overall sales turnover It its figure.
In case the company would opt for Option B, the sales forecast of connected car segment
would be low er as compared that to of Option A. The company would be able to grow
connected cars 10.2 at % per year for the entire forecasted period.
0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10 11
Sales Connected 3.8 4.18765.23455.76847.21059.013211.26614.08317.60422.00527.506
Sales Traditional 183.3 188.71194.27199.96 205.8 211.78217.91224.18230.59237.16244.09
Salesaa forecastaa dataaa -aa Optionaa Aaa aa
Sales Traditional Sales Connected
Gross Profit Margin Forecast
A comparison of the gross profit margin forecast has been carried out to identify the option
that uld be more wo feasible and financially beneficial for the business entity. This analytical
