A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The management forecasts 2% growth in sales each month.
-Total August sales are anticipated to be:
A) $67,500.
B) $64,260.
C) $61,250.
D) $60,000.
E) $63,000.

Question

A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The management forecasts 2% growth in sales each month. 
-Total August sales are anticipated to be:
A) $67,500.
B) $64,260.
C) $61,250.
D) $60,000.
E) $63,000.

Quizplus · Accepted Answer

To calculate the total sales for August, we need to first calculate the number of units that will be sold in August.

A 2% growth in sales each month means that the number of units sold in August will be 2% more than the number of units sold in July.

2% of 6,000 units = 0.02 x 6,000 = 120 units

So, the total number of units that will be sold in August is 6,000 + 120 = 6,120 units.

To calculate the total sales, we need to multiply the number of units by the price per unit:

6,120 x $10.50 = $64,260

Therefore, the answer is B.

A July Sales Forecast Projects That 6,000 Units Are Going