Question

Kraft Bakeries introduced in 2019 a new line of frozen apple pie. For 2019, sales by quarter were as follows: 11,000 units, 16,000 units 15,000 units, and 20,000 units. Because of aggressive marketing and promotion, the company expects that sales for each quarter of 2020 will be 25% higher than the respective quarter in 2019, The selling price per unit in 2020 is expected to be $4 What are the expected sales, in units and dollars, for the second quarter of 2020? For the third quarter of 2020? Second Quarter of 2020 Third Quarter of 2020 Expected sales in units Expected sales in dollars

Answer 1

Expected sales in units 20,000 18,750 and Expected sales in dollars $80,000 $75,000

second quater of 2020,third quater of 2020

Sales—2019 is 16,000 15,000

Plus projected 25% increase for 2020 4,000  3,750

Estimated sales volume—2020 20,000  18,750

× Estimated unit selling price—2020 $ 4.00 $ 4.00

Estimated sales dollars—2020 $ 80,000  $ 75,000

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