Grace manufactures and sells miniature digital cameras for $340 each. 1,300 units were sold in May, and management forecasts 4% growth in unit sales each month. (a) Determine the number of units of camera sales for the month of June. (b) Determine the dollar amount of camera sales for the month of June.

(a) 1,352 units

(b) $459,680

Explanation:

(a) Number of units of camera sales for the month of June:

= Units were sold in May + (Units were sold in May * growth in unit sales each month)

= 1,300 + (1,300 * 4%)

= 1,300 + 52

= 1,352 units

(b) Amount of camera sales for the month of June:

= No. of units * Selling price per unit

= 1,352 units * $340

= $459,680