All Metal Bearings had sales of 12,000 units at $30 per unit last year. The marketing...

All Metal Bearings had sales of 12,000 units at $30 per unit last year. The marketing manager projects a 15 percent increase in unit-volume sales this year with a 10 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 5 percent of total sales.

What is your net dollar sales projection for this year?

Net sales $

PS - please explain every step.

Expert Solution

Expected Sales = 12,000 * (1+15%) = 13,800 units

Expected Sales Price = $30 * (1 - 10%) = $27

Sales Return = 5% of total sales

Total Sales = Expected Sales * Expected Sales Price

= 13,800 units * $27

= $372,600

Sales return = Total sales * 5%

= $372,600 * 5%

= $18,630

Net dollar sales projection for this year = Total Sales - Sales Return

= $372,600 - $18,,630

= $353,970

Therefore, net dollar sales projection for this year is $353,970

jeff jeffy answered 2 years ago

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