Question

Sales for the Men’s Suit department last year were $920,000. The manager for the department plans an increase of 9.5% for this year. What is this year’s projected sales volume?

Answer 1

The projected sales is $1007400

Explanation:

Given

`Sales = \$920000`

`Increment = 9.5\%`

Required

Determine the new projected sales

Increment is calculated using:

`Increment = Initial\ Value(1 + Increment\%)`

In this case:

`Projected\ Sales = Sales(1 + Increment\%)`

`Projected\ Sales = 920000(1 + 9.5\%)`

Convert % to decimal

`Projected\ Sales = 920000(1 + 0.095)`

`Projected\ Sales = 920000*1.095`

`Projected\ Sales = 1007400`

Hence, the projected sales is $1007400