Sales forecast based on external data. Nelson Heating and Ventilating Company es

Question

Sales forecast based on external data. Nelson Heating and Ventilating Company estimates the coming year's sales revenue based on as a "yardstick" for many financial statements and projections. The company does business in four Midwest states. Last year, it completed heating and ventilating systems in four shopping malls with an average size of 2,919,000 square feet for sales revenues of $9,541,000. Nelson is the primary contractor for one-third of the new malls in the four-state area. This coming year, 9 new malls are under construction with an average size of 4,409,000 square feet. What is Nelson's anticipated sales revenue for the coming year? Hints: Make sure to round all intermediate calculation to at least five decimal places What is Nelson's anticipated sales revenue? (Round to the nearest dollar.)

Explanation / Answer

Revenue per Square Foot last year = $9,541,000 / 2,919,000

= $3.2686,

Revenue per Square Foot last year was $3.2686.

Coming year work Size = 4,409,000 Square Foot.

Coming year revenue = 4,409,000 × $3.2686

= $14,411,191.85.

Coming year expected revenue of company will be $14,411,191.85.

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