Question

Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%. Compute the total sales dollars to be reported on the sales budget for month ended June 30.

Answer 1

Hello there!

Your question asks what would be the cost of the sales that Zhang Industries made at the end of June 30th.

Answer: $288,400

In order to solve your question, lets gather some important information.

Important Information:

• Sells a product for $700
• Unit Sales were 400 in May
• Each month's sales expected to increase 3% every month

With the information above, we can find the answer.

We know that each month's sales increase by 3%. This means that from May to June, the amount of sales increased by 3%, so we need to find how much they made in June.

We would find this by multiplying 400 by 1.03

`400*1.03=412`

In June, they sold 412 products.

We know that each product was sold for $700 each, so we would multiply 412 by 700 in order to get the amount they made from sales.

`412*700=288,400`

When you're done solving, you should get 288,400.

This means that the total sales they made from the product at the end of June 30th is $288,400.

I hope this helps!

Best regards,

MasterInvestor