Last year, Garrison Manufacturing sold 250,000 units at $8 each. Both sales volume and sales price are expected to increase by 15 percent in the upcoming year. The expected sales revenue for the upcoming year is:

Question

Quizplus · Accepted Answer

To find the expected sales revenue for the upcoming year, we first need to multiply the current sales volume and current sales price by the expected increase of 15 percent:
250,000 x 1.15 = 287,500 units expected to be sold in the upcoming year
$8 x 1.15 = $9.20 expected sales price in the upcoming year
Then, we can multiply the two values to get the expected sales revenue:
287,500 x $9.20 = $2,645,000
Therefore, the answer is A) $2,645,000.

Last Year, Garrison Manufacturing Sold 250,000 Units at $8 Each