MG Lighting had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volume this year because a 10 percent price increase is needed to pass rising costs through to customers. Returned merchandise will represent 3.2 percent of total sales. What is MG Lighting net dollar sales projection for this year?

Question

Quizplus · Accepted Answer

Unit volume 500 × 0.85 425
Price $100 × 1.10 × $110
Total Sales $46,750
Returns (3.2%) 1,496
Net Sales $45,254

MG Lighting Had Sales of 500 Units at $100 Per