Question

Cameroon corp. manufactures and sells electric staplers for $19 each. if 24,400 units were sold in december, and management forecasts 5% growth in sales each month, the number of electric stapler sales budgeted for february should be:

Answer 1

The number of sales each month is expected to be a factor of (1 + .05) = 1.05 times the number of sales in the previous month. Thus January sales will be 1.05 times December sales, and February sales will be 1.05 times that:

... February sales = 1.05(1.05·(December sales)) = 1.05²·24,400

... February sales = 26901

_____

You might want to round this to 26900. Sales forecasts are nototiously inaccurate, so rounding to the nearest hundred is probably appropriate.