Total sales estimation:-

These are the sum of estimated first- time sales, replacement sales and repeat sales. Its
method depends upon whether the product is one time purchase(an engagement ring), an
infrequently purchased products like toaster, auto mobile etc. or a frequently purchased
products like consumer and industrial non durables.

Estimation costs and profits.

The R&D, manufacturing, marketing and financial departments estimates the costs. The
profitability of the new product is estimated through various financial tools. The simplest
technique is the breakeven analysis in which the management estimates how many units of
the product the company would have to sell to break even with the given price and cost
structure. If the management believes that sales could easily reach the break even number, it
is likely to move the project into development stage.