PulsePods is a start-up that sells wireless earbuds aimed at senior high school students. The marketing manager launched a 3-month campaign for a new model, the PulsePods Lite, using a mix of TikTok ads, influencer posts, and a limited-time bundle (earbuds + protective case).
Before launch, PulsePods prepared a financial forecast for the campaign based on planned sales volume, expected selling price, and expected marketing costs.
Forecast assumptions (for the 3 months):
- Planned units sold: 3,000
- Planned average selling price per unit: \$79
- Planned variable cost per unit (production + shipping): \$34
- Planned marketing spend: \$60,000
Actual results after 3 months:
- Actual units sold: 2,200
- Actual average selling price per unit: \$74
- Actual variable cost per unit: \$36
- Actual marketing spend: \$72,000
Additional monitoring information collected during the campaign:
- Website analytics show high click-through rates on ads, but a high cart-abandonment rate at the checkout page.
- Customer feedback frequently mentions “delivery takes too long” and “confusing returns policy”.
- A competitor released a similar product in month 2 and offered free express shipping.
- Influencer content generated strong engagement, but discount-code usage was lower than expected.
Using the forecast assumptions, calculate PulsePods’ forecast for:
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Create Free Account Log inThis is a free HSC HSC Business Studies practice question worth 4 marks, testing your understanding of Planning and implementing finance. It falls under processes of financial management in Module 3: Finance. Submit your answer above to receive instant AI-powered marking and personalised feedback.
The focus of this topic is the role of interpreting financial information in the planning and management of a business.
planning and implementing – financial needs, budgets, record systems, financial risks, financial controls; debt and equity financing – advantages and disadvantages of each; matching the terms and source of finance to business purpose
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