Cameroon Corp.manufactures and sells electric staplers for $16 each.If 10,000 units were sold in December,and management forecasts 4% growth in sales each month,the number of units of electric stapler sales budgeted for February should be:

Question

Quizplus · Accepted Answer

To find the answer, we need to use the formula for calculating the sales budget:

Projected Sales = Actual Sales in the beginning month * (1 + Growth rate)^Number of months

Here, the actual sales in the beginning month (December) are given as 10,000 units. The growth rate is given as 4% per month. So, we can calculate the projected sales for February as follows:

Projected Sales in February = 10,000 * (1 + 0.04)^2
= 10,816 units (rounded to the nearest whole number)

Therefore, the correct answer is choice D - 10,816.