Question

Cyber Security Systems had sales of 3,200 units at $50 per unit last year. The marketing manager projects a 10 percent increase in unit volume sales this year with a 10 percent price increase. Returned merchandise will represent 8 percent of total sales. What is your net dollar sales projection for this year?

Answer 1

$178,112.00

Step-by-step explanation:

This year sales volume=last year volume*(1+10%)

This year sales volume=3,200*(1+10%)=3520 units

This year's price=last year's price*(1+10%)

This year's price=$50*(1+10%)=$55

Total sales this year=This year sales volume*This year's price

Total sales this year=3520*$55

Total sales this year=$193,600.00

returned merchandise=$193,600.00*8%

returned merchandise=$15,488.00

net dollar sales projection for this year =Total sales this year-returned merchandise

net dollar sales projection for this year=$193,600.00-$15,488.00 =$178,112.00