Question

Cameroon Corp. manufactures and sells electric staplers for $15.30 each. If 10,000 units were sold in December, and management forecasts 3.3% growth in sales each month, the number of electric stapler sales budgeted for March should be:

Answer 1

Electric stapler sales budgeted for March should be: 11,023 units.

Step-by-step explanation:

Apply the growth of 3.30% to each month starting December as follows :

December Sales = 10,000 units

January Sales = 10,000 × (1.033)^1 = 10,330 units

February Sales = 10,000 × (1.033)^2 = 10,671 units

March Sales = 10,000 × (1.033)^3 = 11,023 units