In 2012, Truman Products sold 900,000 units at $9 each. Sales volume is expected to increase by 10 percent in 2013 while the price of each unit is expected to decrease by 15 percent. The expected sales revenue for 2013 is:
A) $8,761,500
B) $1,336,500
C) $7,573,500
D) $6,885,000

Question

Quizplus · Accepted Answer

To calculate the expected sales revenue in 2013, we need to first calculate the expected sales volume and the expected price per unit.

Expected sales volume in 2013 = 900,000 x 1.1 = 990,000 units
Expected price per unit in 2013 = $9 x (1-0.15) = $7.65

Expected sales revenue in 2013 = Expected sales volume x Expected price per unit
= 990,000 x $7.65
= $7,573,500

Therefore, the expected sales revenue for 2013 is $7,573,500, which is option C.

In 2012, Truman Products Sold 900,000 Units at $9 Each