Question

12.4

Sales forecast based on external data.  

Nelson Heating and Ventilating Company estimates the coming​ year's sales revenue based on external data. The​ company's main business is shopping mall​ construction, and it uses the square footage of each mall as a​ "yardstick" for many financial statements and projections. The company does business in four Midwest states. Last​ year, it completed heating and ventilating systems in four shopping malls with an average size of 2,907,000 square feet for sales revenues of $9,654,000. Nelson is the primary contractor for​ one-third of the new malls in the​ four-state area. This coming​ year, 15 new malls are under construction with an average size of 4,414,000 square feet. What is​ Nelson's anticipated sales revenue for the coming​ year?

​Hints: Make sure to round all intermediate calculation to at least five decimal places.

What is​ Nelson's anticipated sales​ revenue? (Round to the nearest dollar)

Answer 1

IF ANY QUERY, FEEL FREE TO ASK THEM AND GET RESOLVED Solution: 1 Revenue per square feet Sales revenue 3.32095 9654000 = 2907000 average size 2 Sales revenue number of mall x area x share x revenue per square feet 15 x 4414000 x 1/3 x 3.32095 $73,293,367 =