Question

Cameroon Corp. manufactures and sells electric staplers for $17.00 each. If 10,000 units were sold in December, and management forecasts 5.0% growth in sales each month, the number of units of electric stapler sales budgeted for March should be:

Answer 1

Sales in March= 11,576 units

Step-by-step explanation:

Giving the following information:

10,000 units were sold in December

Management forecasts 5% growth in sales each month.

To calculate the sales for March, we need to use the following formula:

FV= PV*(1+i)^n

FV= future value in sales units

PV= present value in sales units

i= growth rate

n= number of months

FV= 10,000*(1.05^3)

FV= 11,576 units