Tee Time manufactures wireless USB ports and sells them for $9 each. The company recently began marketing and selling the USB ports on the Web, and based on economic predictions, the company expects sales to increase dramatically. Unit sales in December, 2014 totaled 18,000 units. Sales for 2015 are expected to increase by 10% each month for the near future. How much is the sales budget for February?

Question

Quizplus · Accepted Answer

To find the sales budget for February, we need to find the expected unit sales for February and multiply it by the selling price of $9.

We can start by finding the expected unit sales for February:

- First, we know that the sales for December 2014 were 18,000 units. 
- Next, we need to calculate the expected sales increase each month: 
   - January 2015: 18,000 x 1.1 = 19,800 units 
   - February 2015: 19,800 x 1.1 = 21,780 units

Now that we know the expected unit sales for February, we can calculate the sales budget:

Sales budget for February = 21,780 x $9 = $196,020

Therefore, the correct answer is C.

Tee Time Manufactures Wireless USB Ports and Sells Them for $9