Bergstrom Industries sold 460,000 trash barrels at $12 each during the first quarter of 2010.Unit sales are projected to increase 5% each quarter while the selling price will be reduced by $.50 each quarter.The estimated sales revenue for the fourth quarter of 2010 is:

Question

Quizplus · Accepted Answer

First, we need to calculate the unit sales and selling price for each quarter:

Q1: 460,000 units x $12 = $5,520,000
Q2: 460,000 units x 1.05 = 483,000 units x ($12 - $0.50) = $5,184,150
Q3: 483,000 units x 1.05 = 507,150 units x ($11.50 - $1.00) = $5,550,682.50
Q4: 507,150 units x 1.05 = 532,507.5 units x ($11.00 - $1.50) = $5,591,333.75

Therefore, the estimated sales revenue for the fourth quarter of 2010 is $5,591,334, which corresponds to choice C.

Bergstrom Industries Sold 460,000 Trash Barrels at $12 Each During