Question

A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2% growth in sales each month. Total August sales are anticipated to be: Multiple Choice $62,500. $63,750. $61,250. $60,000. $65,000.

Answer 1

`P_i = 5000 units *12.5(dollars)/(unit) = 62500 dollars`

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

`1.02*5000 units= 5100 units`

And the Total August sales would be given by:

`P_f = 5100 units *12.5 (dollars)/(unit)= 63750 dollars`

And the correct answer for this case would be:

$63,750

Step-by-step explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by
`12.5 (dollars)/(unit)`

And the total sales for the original case would be given by:

`P_i = 5000 units *12.5(dollars)/(unit) = 62500 dollars`

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

`1.02*5000 units= 5100 units`

And the Total August sales would be given by:

`P_f = 5100 units *12.5 (dollars)/(unit)= 63750 dollars`

And the correct answer for this case would be:

$63,750