MC Qu. 70 Cameroon Corp. manufactures and sells... Cameroon Corp. manufactures and sells electric staplers for $15.60 each. If 10,000 units were sold in December, and management forecasts 5% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:

The Forecasted sales for February is $ 171,990

Explanation:

There is an monthly growth of 5% in sales units so the number of units sold in February will be:

December Sales units = 10,000

January sales units = 10,500 (10,000×5%)

February sales units = 11,025 (10,000*5%)

Value in amount is $ 11,025 × $15.60 = $171,990

$171,990

Explanation:

Given

Price of electric staplers = $15.60 each

Sales in December (10,000 units)

= 10,000 units × $15.60

= $156000

JANUARY SALES = December sales × (1 +% growth in January)

= $156000 × (1 + 0.05)

= $156000 × 1.05

= $163,800

FEBRUARY SALES = January sales × (1 + % growth in February)

= $163,800 × (1 + 0.05)

= $163,800 × 1.05

= $171,990

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