Suppose last year's sales were $100,000; inflation is 3 percent and you expect your market share to increase by 6 percent.What are your projected sales for this year?

Question

Quizplus · Accepted Answer

Projected sales can be calculated by multiplying last year's sales by the sum of inflation and market share increase as a decimal.

So, Projected sales = $100,000 x (1.03 x 1.06) = $109,180

Therefore, the best choice is D).

Suppose Last Year's Sales Were $100,000; Inflation Is 3 Percent