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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 12
Estimate Sales Revenues
Starlite Company manufactures office products. Last year, it sold 22,500 electric staplers for $20 per unit. The company estimates that this volume represents a 30 percent share of the current electric stapler market. The market is expected to increase by 10 percent next year. Marketing specialists have determined that as a result of new competition, the company's market share will fall to 25 percent (of this larger market). Due to changes in prices, the new price for the electric staplers will be $21 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates.
Required
Estimate Starlite's sales revenues from electric staplers for the coming year.
Starlite Company manufactures office products. Last year, it sold 22,500 electric staplers for $20 per unit. The company estimates that this volume represents a 30 percent share of the current electric stapler market. The market is expected to increase by 10 percent next year. Marketing specialists have determined that as a result of new competition, the company's market share will fall to 25 percent (of this larger market). Due to changes in prices, the new price for the electric staplers will be $21 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates.
Required
Estimate Starlite's sales revenues from electric staplers for the coming year.
Explanation
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'S' Company manufactures sells electric ...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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