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    mixluvchild84's Avatar
    mixluvchild84 Posts: 4, Reputation: 1
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    #1

    Jan 29, 2011, 12:52 PM
    Dodge Ball Bearings had sales of 10,000 units at $20 per unit last year.
    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    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.
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