Cameroon Corp manufactures and sells electric staplers for 1

Cameroon Corp. manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be: A. $187,177 B. $166,400 C. $179,978 D. $173,056 E. $160,000

Solution

total units sold in january = 10000 + 4% of 10000 =10000+400=10400

total units sold for feb. = total units sold in january + 4% of total units sold in january

=10400+4% of 10400

=10400+0.04 x 10400

=10400+416 =10816

so Total amount of stapler sales for february = 10816 x $16 = $173056

So D is correct option.