Answer:
The net dollar sales projection for this year=$522,405
Explanation:
Step 1
Determine the initial price and initial quantity of sales as shown;
initial price=$95
initial quantity of sales=3,900 units
Step 2
Determine the projected price and projected quantity of sales as shown;
projected price=initial price+percentage increase
where;
initial price=$95
percentage increase=(20/100)×95=$19
replacing;
projected price=95+19=$114
projected quantity of sales=initial quantity+percentage increase
where;
initial quantity=3,900
percentage increase=(25/100)×3,900=$975
replacing;
projected quantity of sales=3,900+975=4,875 units
Step 3
Determine the total sales in terms of dollars;
total sales=(114×4,875)=$555,750
Step 4
Determine net sales as follows;
net sales=total sales-returned merchandise
where;
total sales=$555,750
returned merchandise=(6/100)×555,750=$33,345
net sales=(555,750-33,345)=$522,405
The net dollar sales projection for this year=$522,405
