Question

MG Lighting had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volume this year because a 10 percent price increase is needed to pass rising costs through to customers. Returned merchandise will represent 3.2 percent of total sales. What is your net dollar sales projection for this year?

A. $26,976

B. $69,344

C. $72,800

D. None of the options.

Answer 1

To calculate the net dollar sales projection for this year, subtract the decrease in unit volume from the previous year's sales and add the price increase to the previous year's price. Multiply the new unit volume by the new price per unit.

Step-by-step explanation:

To calculate the net dollar sales projection for this year, we need to consider the decrease in unit volume and the price increase.

First, we find the new unit volume by subtracting the decrease of 15% from the previous year's sales: 500 units * (1 - 15%) = 425 units.

Next, we calculate the new price per unit by adding the 10% price increase to the previous year's price: $100 * (1 + 10%) = $110 per unit.

Finally, we multiply the new unit volume by the new price per unit to get the net dollar sales projection for this year: 425 units * $110 per unit = $46,750.