Juan: I'm really excited about the
of our new line of fat-free Delicious Delight donuts.
Diane: Me too. But before we
, we'd better make sure this product line is going to be profitable.
Juan: I did some back-of-the-envelope calculations. Take a look.
Diane: I see you've estimated $2 million for the new equipment. Where did you get that figure?
Juan: That's an
based on some equipment I bought last year.
Diane: You're going to need
that. Using old estimates can get us in hot water.
Juan: No problem. I'll get on the phone with the manufacturer in Dallas and
.
Diane: Do you have a sense for market demand? We should get the forecasts from the marketing department before we crunch the numbers.
Juan: We don't have those yet. Mary from marketing said maybe we'd have them next week.
Diane: It just blows my mind when marketing people want us to run numbers, and they don't bring us the information we need!
Juan: If we end up in the red on this project, it's going to be
, not ours. They're the ones with P&L* responsibility!
Diane: Our CFO* won't give this project the green light until he sees all the numbers. If it doesn't look like we'll make money or at least
, he'll pull the plug on the project.
*P&L - profit & loss.
* CFO - chief financial officer.