Question

A company expects to sell 400 units of Product X in January and then expects sales to increase by 10% per month. If Product X sells for $10 each, the total sales for the first quarter of the year will be_________ $

Answer 1

Answer:

$13,240

Explanation:

The computation of the sales in first quarter of the year is shown below:

= January sales units +  January sales units × increased percentage + February sales units × increased percentage

= 400 units + 400 units × 1.1 + 440 units × 1.1 units

= 400 units + 440 units + 484 units

= 1,324 units

So, now the sales is

= 1,324 units × $10

= $13,240