Black Box Assumptions:

• Market Growth Rate: The model assumes a specific annual growth rate for the target market. This assumption is crucial for projecting future sales, but it might not be explicitly stated or justified within the model itself.
• Customer Acquisition Cost: The model factors in a cost per customer acquired, but the underlying assumptions about marketing effectiveness, conversion rates, and competitor strategies might not be readily apparent.
• Manufacturing Efficiency: The model assumes a certain level of efficiency in production, impacting the cost of producing each unit. However, factors like potential production delays, raw material price fluctuations, or learning curve effects might not be explicitly considered.

Consequences of the Black Box:

• Hidden Risks: If the underlying assumptions are overly optimistic or not well-supported, the model could underestimate potential costs or overestimate market demand, leading to misleading conclusions about profitability.
• Limited Transparency: Without clear documentation or explanations for these assumptions, it's difficult for someone reviewing the model to understand the rationale behind the projections.
• Difficulty in Adapting: If market conditions change unexpectedly, it's harder to adjust the model and assess the impact on profitability if the key assumptions are hidden or not readily accessible.