The Sledge Hammer Company Manufactures a Line of High Quality

question 50

Multiple Choice

The Sledge Hammer Company manufactures a line of high quality tools.The company sold 1,000,000 hammers at a price of $4 per unit last year.The company estimates that this volume represents a 20% share of the current hammers market.The market is expected to increase by 5%.Marketing specialists have determined that,as a result of a new advertising campaign and packaging,the company will increase its share of this larger market to 24%.Due to changes in prices,the new price for the hammer will be $4.30 per unit.This new price is expected to be in line with the competition and have no effect on the volume estimates.What are the estimated sales revenues in the coming year?

• A)$5,040,000.
• B)$5,160,000.
• C)$5,418,000.
• D)$5,689,000.

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