Question

Our company manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the number of electric stapler sales budgeted for March should be:_____.
A) 10,000.
B) 11,249.
C) 10,400.
D) 10,816.
E) 11,000.

Answer 1

Answer:

B) 11,249.

Explanation:

The computation of the number of electric stapler sales budgeted for Marchis shown below:

On Jan

= 10,000 units × 1.04

= 10,400 units

On feb

= 10,400 units × 1.04

= 10,816 units

On march

= 10,816 units × 1.04

= 11,248.64 units

Hence, the correct option is B. 11,249

therefore all other options are wrong

We simply multiplied the unit sales with the growth rate