Question

Cullumber Technology is currently selling 25000 tablets per year. The company is expecting to increase their tablet sales by 30% in the next year with a new marketing strategy. At a price-pertablet of $300, how much in budgeted sales revenue should the company expect?

1) $2.25 million
2) $9.75 million
3) $7.50 million
4) $5.25 million

Answer 1

Cullumber Technology should expect a budgeted sales revenue of $9.75 million.

Step-by-step explanation:

To calculate the budgeted sales revenue for Cullumber Technology, we need to multiply the current tablet sales by the expected increase percentage and the price-per-tablet. The current tablet sales are 25,000 tablets per year, and the expected increase is 30%. So, the estimated tablet sales for the next year would be 25,000 x 1.3 = 32,500 tablets. Now, multiply this number by the price-per-tablet of $300 to get the budgeted sales revenue: 32,500 x 300 = $9.75 million. Therefore, option 2) $9.75 million is the correct answer.