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 dollar amount of electric stapler sales budgeted for February should be:

Question

Quizplus · Accepted Answer

To find the dollar amount of electric stapler sales budgeted for February, we need to calculate the sales forecast for that month using the growth rate given.

December sales = 10,000 units x $16/unit = $160,000

January sales forecast = December sales x 1.04 = $166,400

February sales forecast = January sales forecast x 1.04 = $173,056

Therefore, the dollar amount of electric stapler sales budgeted for February is $173,056, which is closest to answer choice B).