Year-one forecast

Revenue = price × units sold.
Cost of goods sold = variable cost per unit × units sold.
Gross profit = revenue − cost of goods sold.
Simplified pretax income = gross profit − operating expenses.

Use the result: Reduce the sales estimate. Does your plan still cover its costs? Explain which assumption matters most.

Ready Pouch is our fictional example business. Its proposed product is a small pencil pouch for students. Meet Ready Pouch

300 units at USD 6 give revenue of USD 1,800. Cost of goods sold is USD 600. Gross profit is USD 1,200. Operating expenses of USD 600 leave USD 600 before tax. These are fictional teaching figures.

Use one currency. Assume all units made are sold and the price and unit cost stay constant. This simple forecast assumes no interest expense or other income and does not calculate tax. Include all relevant costs and any interest in your full project statement. Do not add initial cash needs as a second expense: count each expense once. Equipment and unsold inventory need separate accounting treatment.