Kayak: How is the Estimated Budget calculated?

This article is intended for students.

Each year, we present the projected revenues based on the sales targets issued by the Board Chair. For example, if the target is 10% higher than the previous year, the simulation displays the expenses and revenues for all the company’s activities reflecting a 10% increase in net sales.

Depending on the sales price, the sales forecast (in units) will vary. A higher selling price decreases the number of units to sell to achieve sales goals. 

Students can see the Estimated Budget in real time on all the decision forms. The link is on the left side of each form. This lets participants check the impact of their decisions and correct them before the simulation deadline.

Be careful! The figures presented in the Estimated Budget are only projections. See the article Why results are different from the estimated budget?

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