Respuesta :
Answer:
Total sales for first 10 years=$69,000
Explanation:
First year=$15,000
He plans increasing annual sales by $6,000 each year for 9 years.
Second year sales= $15,000+$6,000
=$21,000
Third year sales=$21,000+$6,000
=$27,000
Fourth year sales=$27,000+$6,000
=$33,000
Fifth Year sales=$33,000+$6,000
=$39,000
Sixth year sales=$39,000+$6,000
=$45,000
Seventh year sales=$45,000+$6,000
=$51,000
Eighth year sales=$51,000+$6,000
=$57,000
Ninth year sales=$57,000+$6,000
=$63,000
Tenth year sales=$63,000+$6,000
=$69,000
Or
$6,000×9 years+$15,000
=$54,000+$15,000
=$69,000
Answer:
Forecasted sales: 25% maximum reduction. Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
Between March 1 and June 30 there are 4 months.
If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
Therefore, revenues may lower by 25% this year.
To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
