Cyber Security Systems had sales of 3,900 units at $95 per unit last year. The marketing manager projects a 25 percent increase in unit volume sales this year with a 20 percent price increase. Returned merchandise will represent 6 percent of total sales. What is your net dollar sales projection for this year?

Question

Business

Lesly Holland

5 January, 08:49

Cyber Security Systems had sales of 3,900 units at $95 per unit last year. The marketing manager projects a 25 percent increase in unit volume sales this year with a 20 percent price increase. Returned merchandise will represent 6 percent of total sales. What is your net dollar sales projection for this year?

+4

Answers (1)

Know the Answer?

Conner Dean · Answer 1

The net dollar sales projection for this year=$522,405

Explanation:

Step 1

Determine the initial price and initial quantity of sales as shown;

initial price=$95

initial quantity of sales=3,900 units

Step 2

Determine the projected price and projected quantity of sales as shown;

projected price=initial price+percentage increase

where;

initial price=$95

percentage increase = (20/100) * 95=$19

replacing;

projected price=95+19=$114

projected quantity of sales=initial quantity+percentage increase

where;

initial quantity=3,900

percentage increase = (25/100) * 3,900=$975

replacing;

projected quantity of sales=3,900+975=4,875 units

Step 3

Determine the total sales in terms of dollars;

total sales = (114*4,875) = $555,750

Step 4

Determine net sales as follows;

net sales=total sales-returned merchandise

where;

total sales=$555,750

returned merchandise = (6/100) * 555,750=$33,345

net sales = (555,750-33,345) = $522,405

The net dollar sales projection for this year=$522,405