Net dollar sales projections
Not sure if I did this correctly, most problems have had a very systematic formula. This seems rather messy. I would appreciate any help.
ER Medical Supplies had sales of 2,000 units at $160 per unit last year. The marketing manager projects a 25 percent increase in unit volume this year with a 10 percent price increase. Returned merchandise will represent 5 percent of total sales. What is your net dollar sales projection for this year?
1st I figured the projetion for units and volume:
.25 x 2000 = 500
.10x $ 160= 16
2nd I figured net sales:
2500 units x $176= $440,000
3rd I figured the returned merchandise:
.05x$440,000=$22,000
Lastly I subtracted the returned merchandise from net sales:
$440,000-$22,000= $418,000
