Question

Cameroon Corp. manufactures and sells electric staplers for $16.10 each. If 10,000 units were sold in December, and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be: Multiple Choice $181,207 $165,830 $175,929 $170,805 $161,000

Answer 1

Answer:

$165,975

Explanation:

The computation of sales budgeted is shown below:-

For computing the  Sales budgeted for February first we need to compute the January and February units.

January = 10,000 + (3% × 10,000)

= 10,000 + 300

= 10,300

February = 10,000 + (3% × 10,300)

= 10,000 + 309

= 10,309

Sales budgeted for February = For February × Each electric staplers

= 10,309 × $16.10

= $165,975

So, for computing the Sales budgeted for February we simply applied the above formula. The option is not available.