ER Medical Supplies had sales of 2,000 units at $160 per unit last year. The marketing manager projects a 25 percent increase in univolume 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?t

418k

To calculate the net dollar sales projection for this year, we need to consider the increase in unit volume, the price increase, and the percentage of returned merchandise.

1. Calculate the increase in unit volume:
Last year's sales were 2,000 units. The marketing manager projects a 25% increase in unit volume, so we can calculate the increase as follows:
Increase in unit volume = 2,000 units * 0.25 = 500 units

2. Calculate the new unit volume for this year:
New unit volume = Last year's sales + Increase in unit volume
New unit volume = 2,000 units + 500 units = 2,500 units

3. Calculate the new price per unit:
The marketing manager projects a 10% price increase. To calculate the new price per unit, we multiply the current price by 1 plus the percentage increase:
New price per unit = $160 * (1 + 0.10) = $176

4. Calculate the total sales (without considering returns):
Total sales = New unit volume * New price per unit
Total sales = 2,500 units * $176 = $440,000

5. Calculate the amount of returned merchandise:
The question states that returned merchandise will represent 5% of total sales. To calculate the amount of returned merchandise, we multiply the total sales by the percentage:
Returned merchandise = Total sales * 0.05 = $440,000 * 0.05 = $22,000

6. Calculate the net dollar sales projection for this year:
Net dollar sales projection = Total sales - Returned merchandise
Net dollar sales projection = $440,000 - $22,000 = $418,000

Therefore, the net dollar sales projection for this year is $418,000.