Question

MC Qu. 70 Cameroon Corp. manufactures and sells... Cameroon Corp. manufactures and sells electric staplers for $15.20 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:

Answer 1

MC Qu. 70 Cameroon Corp.

The dollar amount of sales budgeted for February:

December Sales in unit = 10,000

January Sales in unit = 10,400

February Sales in unit = 10,816

or 10,000 x 1.0816 represent the 4% month-on-month growth.

Step-by-step explanation:

January Sales in unit = 10,400

Calculated as 10,000 x 1.04 (with 4% growth in sales each month)

February Sales in unit = 10,816

Calculated as 10,400 x 1.04 (with 4% growth in sales each month)

or 10,000 x 1.0816 represent the 4% month-on-month growth.

The January sales is expected to grow by 4% on the December figure. This represent a growth of 1.04.

The February sales therefore grows by 1.0816 on the December figure. This is the same as 1.04 x 1.04.