Top Kitchens handles 17% of all the kitchen production in the area for new construction. It is estimated that the cost of kitchens is 14% of the total cost of constructing a new house. New home construction in the area for the next year is estimated to total $32 million. What sales volume can Top Kitchens expect next year? I HAVE TRIED AND TRIED AND CANNOT GET THE RIGHT ANSWER!
$761,600
32,000,000 * 0.14 * 0.17 = ?
To calculate the sales volume that Top Kitchens can expect next year, we need to follow these steps:
Step 1: Calculate the total cost of constructing new houses in the area.
Given that the estimated total cost of constructing new houses in the area for next year is $32 million, we can represent this value as 100% of the construction cost.
Step 2: Calculate the cost of kitchens in the total construction cost.
Given that the cost of kitchens is estimated to be 14% of the total cost of constructing a new house, we need to find 14% of $32 million.
14% of $32 million = 0.14 x $32,000,000 = $4,480,000.
Step 3: Calculate the sales volume for Top Kitchens.
According to the information provided, Top Kitchens handles 17% of all kitchen production in the area for new construction. Since we know the cost of kitchens for the area is $4,480,000, we need to find 17% of this value.
17% of $4,480,000 = 0.17 x $4,480,000 = $761,600.
Therefore, Top Kitchens can expect a sales volume of $761,600 next year.