Question

In 2012, Wingen Inc. sold 325,000 units at $8 each .Sales volume is expected to increase by 15 percent in 2013 while the price of each unit is expected to decrease by 15 percent. the expected sales revenue for 2013 is a. $373,750 b.$2,541,500 c.$1,878,500 d.$2,990,000

Answer 1

$2541500

Step-by-step explanation:

Given :

2012 :

Units sold = 325,000

Price per unit = $8

2013 :

Projected increase in volume = 15%

Projected decrease in price = 15%

Expected revenue = sales price * volume sold

Volume in 2013:

Projected Unit sold in 2013 = (1 + 0.15) * 325000 = 373750

units

Projected Price in 2013 = (1 - 0.15) * Price in 2012 = (1 - 0.15) * $8 = $6.80

Expected revenue = $6.80 * 373750 = $2541500