Another factor that merits attention for the same reason is the gross profit percentage, which has been forecasted at a fixed 52% of sales. It seems that this is also a vital assumption as the company has fixed costs in the form of admin costs which will remain same in case the gross margin percentage changes and this could lead to a drastic change in the operating profit of the company. Again, a sensitivity analysis in this regard can help in determining the range of outcomes for the said changes (Falls 2006, 65.
All over the news, we see that the European countries are going through much trouble. This includes Britain, whose currency is one in which the company conducts its operations. However, given the economic scenario being faced by all the European countries including Britain, the pound might seem like a vulnerable currency in the future and given the company operates in business in pounds, it would do the company good if it were to earn revenue based on US dollars.
The less than favorable situation in Europe indirectly implies that the pound is going to depreciate against the USD in the future. Hence, it is only natural that the company should price its revenue in USD. In fact, I believe it has been lucky to do so since given the situation in Europe these days, it seems like the Union is set for a doom and so will bring down the respective currencies, the Euro and Pound along with it.