In: Finance
Dodge Ball Bearings had sales of 14,000 units at $40 per unit last year. The marketing manager projects a 25 percent increase in unit volume sales this year with a 5 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 7 percent of total sales. What is your net dollar sales projection for this year?
Units sales(14000*1.25) | 17500 |
Sales price per unit(40*(1-0.05) | $38 |
Total sales(17500*38) | 665000 |
Less:Sales returns(665000*7%) | 46550 |
Net sales projection | $618450 |