Question

A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2% growth in sales each month. Total August sales are anticipated to be: Multiple Choice $62,500. $63,750. $61,250. $60,000. $65,000.

Answer 1

Answer:

$P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars$

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

$1.02*5000 units= 5100 units$

And the Total August sales would be given by:

$P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars$

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by $12.5 \frac{dollars}{unit}$

And the total sales for the original case would be given by:

$P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars$

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

$1.02*5000 units= 5100 units$

And the Total August sales would be given by:

$P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars$

And the correct answer for this case would be:

$63,750