Klocke Corporation's sales for January,2010,were $1,350,000.Klocke projects a 10% increase in monthly sales every 6 months.The sales for December,2010,are estimated at:

Question

Quizplus · Accepted Answer

Klocke Corporation projects a 10% increase in sales every 6 months. From January to December is 11 months, but the increase happens at the 6-month mark and potentially again at the 12-month mark, which is beyond December. Therefore, there's only one increase in this period. The sales in January are $1,350,000. With a 10% increase, the new sales figure is $1,350,000 * 1.10 = $1,485,000. However, since the question asks for the sales in December and implies a second increase at the 12-month mark (which would be January of the next year), we calculate it as follows: $1,485,000 * 1.10 = $1,633,500.

Klocke Corporation's Sales for January,2010,were $1,350,000