Barre plans to sell 5,000 units each quarter next year. During the first two quarters each unit will sell for $12; during the last two quarters the sales price will increase $1.50 per unit. What is Barre's estimated sales revenue for next year?

Question

Quizplus · Accepted Answer

For the first two quarters, the sales revenue is 5,000 units * $12/unit * 2 quarters = $120,000. For the last two quarters, the sales price increases by $1.50 to $13.50/unit, so the revenue is 5,000 units * $13.50/unit * 2 quarters = $135,000. The total estimated sales revenue for the year is $120,000 + $135,000 = $255,000.

Barre Plans to Sell 5,000 Units Each Quarter Next Year