Cameroon Corp.manufactures and sells electric staplers for $16 each.If 10,000 units were sold in December,and management forecasts 4% growth in sales each month,the number of units of electric stapler sales budgeted for March should be:

Question

Quizplus · Accepted Answer

The sales growth is compounded monthly at a rate of 4%. To calculate the sales for March, we apply the growth rate for three months (January, February, and March) to the December sales figure of 10,000 units. The formula for compound growth is: Future Value = Present Value * (1 + growth rate)^number of periods. Therefore, the calculation is 10,000 * (1 + 0.04)^3 = 10,000 * 1.124864 = 11,248.64, which rounds to 11,249 units.