Cyber Security Systems had sales of 4,200 units at $100 per unit last year. The

Question

Cyber Security Systems had sales of 4,200 units at $100 per unit last year. The marketing manager projects a 10 percent increase in unit volume sales this year with a 25 percent price increase. Returned merchandise will represent 6 percent of total sales.

Cyber Security Systems had sales of 4,200 units at $100 per unit last year. The marketing manager projects a 10 percent increase in unit volume sales this year with a 25 percent price increase. Returned merchandise will represent 6 percent of total sales.

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Increase in Sales (Units) = 4200*(1+.10) = 4620

Increase in Selling Price Per Unit = 100*(1+.25) = $125

Total Sales Projected for the Year = 4620*125 = 577500

Less Returns = 577500*6% = 34650

Net Sales = 542850

Answer is 542850.

Thanks.

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