ER Medical Supplies had sales of 2,000 units at $160 per unit last year. The?

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?

# of units sold last year = 2000 units
# of units projected to be sold this year = 1.25 * 2000 = 2500
price per unit last year = 160
price per unit this year = 1.1 * 160 = 176
# of units returned this year = 0.05 * 2500 = 125

Net dollar sales projection for this year = (projected # units to be sold - projected # of units to be returned ) * price per unit

Net dollar sales projection for this year = (2500 - 125) * 176
= 418000

2000*25%=500 increase in units
2,500 total units will be sold

160*10%=$16 increase in price
$176 price per unit

2500 units*5% return rate=125 units returned

2500-125=2375 units sold and kept by customers

2375*$176=$418,000 sales projection

= ([2,000 * 1.25][$160 * 1.1]) - (0.05[{2,000 *1.25}{$160 *1.1}])
= (2,500 * $176) - (0.05[2,500 * $176])
= $440,000 - (0.05 * $440,000)
= $440,000 - $22,000
= $418,000

Answer: The net dollar sales projection for this year is 418,000.