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View Full Version : Dodge Ball Bearings had sales of 10,000 units at $20 per unit last year.


mixluvchild84
Jan 29, 2011, 12:52 PM
Dodge Ball Bearings had sales of 10,000 units at $20 per unit last year. The marketing manager projects a 30 percent increase in unit volume sales this year with a 5 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 3 percent of total sales.

What is your net dollar sales projection for this year?

pready
Jan 29, 2011, 05:50 PM
First thing you have to do is calculate unit sales for the year. 10,000 units from last year * 130% (100% + 30%).

Next you have to calculate the sales price. $20 * 95% (100% - 5%).

Next you calculate the total sales by multiplying your two numbers calculated above.

Next you have to calculate net sales by taking total sales * 97% (100% - 3%) to get net sales

You just need to work your problem one step at a time.