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, 2017 totaled 18,000 units.Sales for 2018 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 calculate the number of units Tee Time expects to sell in February and multiply that by the selling price of $9 per unit.

Since sales are expected to increase by 10% each month, we can use a geometric sequence to find the expected February sales:

December sales = 18,000 units 
January sales = 18,000 units * 1.1 = 19,800 units 
February sales = 19,800 units * 1.1 = 21,780 units

Multiplying the expected February sales of 21,780 units by the selling price of $9 per unit gives us a total sales budget of $196,020.

Therefore, the correct answer is C.

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