How do I do this problem
2 answers:
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Answer:
In year 2013 annual maintenance done = $ 3,000,000
Out of this 85% is expected to renew in 2014 = = $2,550,000
Now Sales in 2013 = $3,000,000
60% of these sales = = $1,800,000
Now out of this 60%, 20% annual maintenance was expected to be paid
In 2014 = = $360000
So, Total annual maintenance in 2014 =
= $2,910,000