Question

Cameroon Corp. 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 dollar amount of electric stapler sales budgeted for February should be:Multiple Choice$179,978$166,400$173,056$160,000$187,177

Answer 1

February sales = $173,056

Step-by-step explanation:

units sold x sales price = sales revenue

10,000 x 16 = 160,000

Then we will apply the growth rate like compounding interest, because the growth accumulated over time:

`December\:Sales * (1+ growth)^(time) = February\:Sales`

time will be how many months past from December to February.

`160,000* (1.04)^(2) = February\:Sales`

February sales = 173056