What is your net dollar sales projection for this year?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Dodge Ball Bearings had sales of 12,000 units at $20 per unit last year. The marketing manager projects a 35 percent increase in unit volume sales this year with a 5 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 8 percent of total sales.


What is your net dollar sales projection for this year?

 

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Step 1

Sales:

It represents the amount of money received from the firm's normal operations. Sales are also known as revenue or the top line item of the income statement.

Sales can be made to the customer either in cash or credit. Accounts receivables represent the portion of sales made in credit and are current assets for the firm.

 

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