Question

Patty’s Pies has sells 900 pies in August for $20.00 each. At the end of August Patty advertises her pies in the local Valupak which will mail to 25,000 local houses. Statistics show that approximately .5% (one half of one percent) of Valupak recipients result in a sale. Based upon this information, compute the amount of sales Patty would budget for September.

Answer 1

Answer: $20,500

Step-by-step explanation:

The amount of sales that Patty would budget for September will be calculated thus:

The expected increase in sales unit will be calculated as:

= 0.5% × 25,000

= 125

Therefore, the unit of sale in September will then be:

= 900 pies + 125 pies

= 1025 pies

Then, the total amount of sale will be:

= 1,025 × $20

= $20,500