Question

Cameroon Corp. manufactures and sells electric staplers for $15.40 each. If 10,000 units were sold in December and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be Multiple Choice o 5173,328 s158620 o o o o of O S16B, 280 o st63,379 O s154.000

Answer 1

Sales in December = 10,000 units

Expected sales in January = 10,000 x 103%

= 10,300 units

Expected sales in February = 10,300 x 103%

= 10,609 units

Selling price per unit = $15.40

Expected dollar sales in February = Expected sales in February x Selling price per unit

= 10,609 x 15.40

= $163,379

Fourth option is correct option.

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