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:

Answer 1

The dollar amount of electric stapler sales budgeted for February should be $173,056.

Step-by-step explanation:

Since we have to calculate the dollar amount of electric stapler sales for February month but in the question, only December units is given. So, first we have to compute the January and February unit sales.

January unit sales = December units + 4% of December units

= 10,000 units + 4% × 10,000 units

= 10,000 units + 400 units

= 10,400 units

February unit sales = January unit sales + 4% of January unit sales

= 10,400 units + 4% × 10,400 units

= 10,400 units + 416 units

= 10,816 units

Now, February sales = February units × selling price

= 10,816 units × $16

= $173,056

Thus, the dollar amount of electric stapler sales budgeted for February should be $173,056.