The manager at a local recreational vehicle store, Recreational Outfitters, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a approach to estimating sales potential.

The correct word for the blank space is: breakdown.

Explanation:

The breakdown approach is a sales forecast analysis based on economic events that could help the firm identify its market potential. With this forecast, companies can determine the number of employees that should be added to their salesforce or if they already have enough labor hand to meet their sales level expectations.

The approach also assumes each sales representative of the firm has the same skills, thus, relatively similar productivity.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total