Question

Stephen Sondheim Company estimates it has a 17% share of the market for office desk lamps in the metropolitan area. Estimated sales for desk lamps for the coming year are $1,320,000. What is Stephen Sondheim Company's projected sales?

A) $224,400
B) $224,000
C) $224,400,000
D) $224,000,000

Answer 1

Stephen Sondheim Company's projected sales for desk lamps with a 17% market share and estimated total sales of $1,320,000 is $224,400, which is Option A.

Step-by-step explanation:

The task is to calculate Stephen Sondheim Company's projected sales for desk lamps based on its market share and the estimated total sales for the coming year in the metropolitan area. With a 17% market share and the estimated total sales of desk lamps being $1,320,000, we can determine Stephen Sondheim Company's projected sales by multiplying the total estimated sales by the market share percentage.

The calculation would be as follows:
Projected Sales = Total Estimated Sales × Market Share Percentage
Projected Sales = $1,320,000 × 0.17
Projected Sales = $224,400

Therefore, the correct answer is A) $224,400.