Question

cyber security systems had sales of 3,800 units at $90 per unit last year. the marketing manager projects a 20 percent increase in unit volume sales this year with a 30 percent price increase. returned merchandise will represent 5 percent of total sales. what is your net dollar sales projection for this year?

Answer 1

To calculate the net dollar sales projection for this year, we need to factor in the projected increase in unit volume sales.The net dollar sales projection for this year is $506,274.

Step-by-step explanation:

To calculate the net dollar sales projection for this year, we need to factor in the projected increase in unit volume sales and the price increase, as well as the percentage of returned merchandise.

The current sales volume is 3,800 units. With a 20% increase, the projected sales volume for this year would be 3,800 + (20% of 3,800) = 3,800 + 760 = 4,560 units.

The current price per unit is $90. With a 30% price increase, the new price per unit would be $90 + (30% of $90) = $90 + $27 = $117 per unit.

The net dollar sales projection is calculated by multiplying the projected sales volume by the new price per unit, and then substracting the percentage of returns from the total amount.

Net dollar sales projection = (Projected sales volume * New unit price) - (Percentage of returns * (Projected sales volume * New unit price)) = (4,560 * $117) - (5% * (4,560 * $117)) = $532,920 - ($532,920 * 0.05) = $532,920 - $26,646 = $506,274.