In this workout, we've been asked to forecast FY1 revenues for a food production company using the assumptions provided. Now the assumptions we've been given are for volume growth of 4% and price increases of 2%. And we've also been given historic revenues as FY0 revenues of 556.2. So let's forecast our revenues. So we'll take 1 + our volume growth. Multiply that by 1 + our price growth and multiply that by our historic revenues. Giving us forecast revenues of 590. Now that we've built this calculation we can see that 1 + volume growth multiplied by 1 + price growth is equivalent to 1 + total revenue growth in a standard revenue forecast calculation. So Revenue growth is equal to 1 + volume growth multiplied by 1 + price growth minus 1. Now, let's calculate the revenue growth implied by our forecasts. So we take our forecast revenue compare that with historic revenue - 1 giving us forecast revenue growth of 6.1% And that's larger than the 4% volume growth and 2% price growth added together because the price and the volume have a compounding effect on revenue. An alternative way to forecast our revenues would therefore be to take 1 + our implied revenue growth and multiply that by our historic revenues? And we can see that we get the exact same results of 590.