Question

Barre plans to sell 5,200 units each quarter next year. During the first two quarters each unit will sell for $13.00; during the last two quarters the sales price will increase $1.50 per unit. What is Barre's estimated sales revenue for next year?

Answer 1

Barre's sales revenue next year is $71,500

Step-by-step explanation:

The estimated total sales volume for 4 quarters next year is 5,200 units which implies that in each quarter sales volume of 1300 units is expected,applying the prices as given the sales revenue next year is analyzed below:

First quarter (1300*$13) =$16,900

Second quarter(1300*$13) =$16,900

Third quarter(1300*($13+$1.5)) =$18,850

Fourth quarter(1300*($13+$1.5)) =$18,850

Total sales revenue next year $71,500

Barre's total sales revenue for next year is $71,50 having applied the price increase of $1. 5 per unit in the third and the last quarter