Dodge Ball Bearings had sales of 19,000 units at $65 per unit last year. The mar

Question

Dodge Ball Bearings had sales of 19,000 units at $65 per unit last year. The marketing manager projects a 15 percent increase in unit volume sales this year with a 20 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 12 percent of total sales.

What is your net dollar sales projection for this year?

I got 1,005,784.00 but that is wrong! Help please!! Thank you!

What is your net dollar sales projection for this year?

I got 1,005,784.00 but that is wrong! Help please!! Thank you!

Explanation / Answer

New unit volume = (1+15%)*19000

=21850

New Price = (1-20%)65

=$52

Merchadise returned = 12%

total sales = 52*21850*(1-12%)

=$999856

Hence, $999856 is the correct answer

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