Bird plans to sell 4600 units each quarter next year During

Bird plans to sell 4,600 units each quarter next year. During the first two quarters each unit will sell for $10.00; during the last two quarters the sales price will increase $1.50 per unit. What is Bird\'s estimated sales revenue for next year?

a. $184,000.

b. $197,800.

c. $211,600.

d. $186,800.

e. Some other amount.

Solution

Solution: answer is b. $197,800.

Working : Bird\'s estimated sales revenue =

= 4,600 x $10.00 + 4,600 x $10.00 + 4,600 x $11.50 + $4,600 x $11.50

= $46,000 +$46,000 +$52,900 + $52,900

= $197,800