A marketing researcher estimates that during the next year a market's total purchases of a new product will be $250,000. One firm expects to sell $110,000 worth. It knows that its profits will be about 10 percent of its sales. This firm's sales forecast is:
A) $90,000
B) $250,000
C) $110,000
D) $11,000
E) There is not enough information to tell.

Question

Quizplus · Accepted Answer

The firm expects to sell $110,000 worth of the product, and its profits will be 10% of its sales. Therefore, the firm's expected profit would be $11,000 (i.e. 10% of $110,000). However, the question only asks for the sales forecast, so the answer is $110,000.

A Marketing Researcher Estimates That During the Next Year a Market's